Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified United Parcel Service as such a stock due to the following factors:
- UPS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $184.9 million.
- UPS traded 17,937 shares today in the pre-market hours as of 8:01 AM.
- UPS is down 3.5% today from Friday's close.
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More details on UPS:
United Parcel Service, Inc., a package delivery company, provides transportation, logistics, and financial services in the United States and internationally. It operates in three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. The stock currently has a dividend yield of 2.6%. UPS has a PE ratio of 23.1. Currently there are 9 analysts that rate United Parcel Service a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for United Parcel Service has been 2.3 million shares per day over the past 30 days. United Parcel Service has a market cap of $73.5 billion and is part of the services sector and transportation industry. The stock has a beta of 0.88 and a short float of 1.5% with 4.44 days to cover. Shares are down 1.4% year-to-date as of the close of trading on Friday.
rates United Parcel Service as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 2.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Air Freight & Logistics industry and the overall market, UNITED PARCEL SERVICE INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $2,267.00 million or 28.95% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 17.16%.
- UNITED PARCEL SERVICE INC's earnings per share declined by 9.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, UNITED PARCEL SERVICE INC increased its bottom line by earning $4.62 versus $0.80 in the prior year. This year, the market expects an improvement in earnings ($5.08 versus $4.62).
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full United Parcel Service Ratings Report.