Click to Enlarge Transportation stocks have been gaining ground on the broader market again as we head into the seasonally strong fourth quarter. UPS (UPS) has been among the relative leading companies within the sector, doubling the performance of the iShares Transportation Average ETF (IYT) by double.
Despite the fact that UPS is driving higher, short interest has been piling up since July. Watch for a break above the $92 level to start shaking the shorts out of their positions.
As a kicker, only 48% of the current analyst recommendations rank the stock a “buy,” meaning that we also could see upgrades help move UPS higher.