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 United Parcel Service Inc (UPS) Class B ( UPS) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified United Parcel Service Inc (UPS) Class B 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 $275.2 million.
- UPS has traded 1.7 million shares today.
- UPS traded in a range 257.1% of the normal price range with a price range of $2.84.
- UPS traded below its daily resistance level (quality: 1 day, meaning that the stock is crossing a resistance level set by the last 1 calendar day. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower. EXCLUSIVE OFFER: Get the inside scoop on opportunities in UPS with the Ticky from Trade-Ideas. See the FREE profile for UPS NOW at Trade-Ideas 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 and Freight. The U.S. The stock currently has a dividend yield of 2.7%. UPS has a PE ratio of 102.5. Currently there are 10 analysts that rate United Parcel Service Inc (UPS) Class B a buy, no analysts rate it a sell, and 9 rate it a hold. The average volume for United Parcel Service Inc (UPS) Class B has been 3.1 million shares per day over the past 30 days. United Parcel Service Inc (UPS) Class B has a market cap of $65.8 billion and is part of the services sector and transportation industry. The stock has a beta of 0.72 and a short float of 2.6% with 3.79 days to cover. Shares are up 23.8% year to date as of the close of trading on Friday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates United Parcel Service Inc (UPS) Class B as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance and notable return on equity. 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 2.2%. Since the same quarter one year prior, revenues slightly increased by 1.2%. 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.
- Net operating cash flow has slightly increased to $1,673.00 million or 6.56% when compared to the same quarter last year. In addition, UNITED PARCEL SERVICE INC has also modestly surpassed the industry average cash flow growth rate of 5.72%.
- Compared to its closing price of one year ago, UPS's share price has jumped by 25.41%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- UNITED PARCEL SERVICE INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, UNITED PARCEL SERVICE INC reported lower earnings of $0.80 versus $3.83 in the prior year. This year, the market expects an improvement in earnings ($4.75 versus $0.80).
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness 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 exceeds that of both the industry average and the S&P 500.
- You can view the full United Parcel Service Inc (UPS) Class B Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.