United Parcel Service (UPS) to Sell Coyote Logistics to RXO

Group 1 - United Parcel Service (UPS) has announced the sale of its Coyote Logistics business unit to RXO, Inc. for $1.025 billion, which is less than the amount UPS paid to acquire Coyote Logistics in 2015 [1] - The sale is expected to allow UPS to focus on its core businesses and allocate resources towards developing new services and solutions for future client needs [1][2] - The transaction is subject to regulatory review and is anticipated to close by the end of 2024, after which UPS will update its financial guidance [1] Group 2 - Coyote Logistics is a global third-party logistics provider that collaborates with 100,000 network carriers and manages 10,000 loads per day [1] - UPS CEO Carol B. Tome emphasized that the decision to sell Coyote Logistics aligns with the company's goal to become the premium small package provider and logistics partner globally [2] Group 3 - UPS currently holds a Zacks Rank 3 (Hold), while GATX Corporation and Trinity Industries, Inc. are better-ranked stocks in the Zacks Transportation sector, both holding a Zacks Rank 1 (Strong Buy) [3] - GATX has shown a positive earnings surprise history, surpassing the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 7.49% [3] - Trinity Industries has raised its 2024 earnings per share guidance to a range of $1.35 to $1.55, reflecting an upward revision from previous guidance [4]