United Parcel Service (UPS) is the world's largest express-delivery company. Its fleet of shiny brown delivery trucks is ubiquitous in over 120 countries. It provides logistics and freight forwarding via air, sea, rail and ground links as well as international trade management and customs brokerage.
More than 70% of its volume is business-to-business, and the company claims it delivers over half of the goods purchased on the Internet.Standard & Poor's said in a recent research report that it expects 2011 revenue will rise 11% over last year, accelerating from 9%. "We see gains in U.S. domestic as well as international shipping, driven by strengthening in the U.S. and global economies. "We see a 14% rise in supply-chain and freight revenues after a 16% increase in 2010," added S&P analysts, and fuel surcharges are likely to boost revenue. "We expect UPS to be successful in getting customers to absorb rate increases, given our view that shipping demand is likely to improve." S&P estimates that UPS will post earnings of $4.36 per share in 2011, a 22% rise from 2010. Its survey of analysts' ratings found 12 "buys," 11 "buy/holds" and seven "holds." UBS (UBS) has a "buy" rating on UPS shares and an $86 price target. Bank of America (BAC) reiterated its "buy" rating on UPS on March 11 with an $82 price target based on a 19.5 times projected 2011 earnings estimate of $4.22 per share. It's forecasting earnings of $4.95 per share in 2012 for the company. UPS's shares are up 2% this year and 18.5% over the past 12 months, giving the company a market value of $71 billion.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV