UPS Shares Reach Triple Digits Following Blowout Q2 Earnings

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

United Parcel Service, Inc. UPS shares were trading sharply higher by $4.79 at $99.91 in Tuesday's session. The catalyst for the strong rally is a Q2 beat for EPS ($1.37 vs. $1.27 estimates) on lower revenues ($14.1 billion vs. $14.51 billion). The company sees full year EPS guidance at high end of $5.05-$5.30 vs. estimates of $5.19.

The rally in pre-market trading has followed through into the regular session. Aggressive traders rallied shares from its Monday close of $95.12 to $98 just before the open. After opening at $97.89, it retreated only $0.06 to $97.83 before resuming its rally.

It surpassed the $100 level, reaching $100.29 and continued to make highs for the day,

UPS has not traded over $100 since June 24, when it peaked at $100.80 before swooning to and making a new low for the recent slide in Monday's session at $94.14.

UPS has not closed in triple digits since June 23, when it ended the session at $100.75.

It should be noted that Federal Express FDX shares are rallying in sympathy with UPS and are trading higher by $4.12 at $168.86.