United Parcel Service (UPS) Hits New Lifetime High

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 ( UPS) as a new lifetime high 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 $394.0 million.
  • UPS has traded 26,319 shares today.
  • UPS is trading at a new lifetime high.

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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 2.5%. UPS has a PE ratio of 26.9. 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 3.1 million shares per day over the past 30 days. United Parcel Service has a market cap of $76.5 billion and is part of the services sector and transportation industry. The stock has a beta of 0.86 and a short float of 1.2% with 2.28 days to cover. Shares are up 3.1% 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 as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • UPS's revenue growth has slightly outpaced the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 5.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • UNITED PARCEL SERVICE INC has improved earnings per share by 13.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. 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 ($4.96 versus $4.62).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Air Freight & Logistics industry average. The net income increased by 10.7% when compared to the same quarter one year prior, going from $1,097.00 million to $1,214.00 million.
  • The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. 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.
  • The gross profit margin for UNITED PARCEL SERVICE INC is currently extremely low, coming in at 13.67%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 8.49% is above that of the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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