United Parcel Service Inc. (NYSE:UPS) has a beta of 1.06, a 12-month trailing P/E ratio of 35.69, and a growth ratio of 2.88. The stock’s Relative Strength Index (RSI) is 56.25, with weekly volatility at 1.64% and ATR at 3.99. The UPS stock’s 52-week price range has touched low of $99.59 and a $219.59 high. Its shares traded lower over the last trading session, losing -0.64% on 06/04/21. The shares fell to a low of $208.63 before closing at $210.63. Intraday shares traded counted 2.91 million, which was 17.66% higher than its 30-day average trading volume of 3.54M. UPS’s previous close was $211.98 while the outstanding shares total 872.00M.
Investors have identified the Integrated Freight & Logistics company United Parcel Service Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $184.54 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
United Parcel Service Inc. (UPS) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For UPS, the company has in raw cash 7.73 billion on their books with 1.81 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 20.98 billion total, with 16.31 billion as their total liabilities.
UPS were able to record 3.7 billion as free cash flow during the 07/27/2021 quarter of the year, this saw their quarterly net cash flow reduce by 1.82 billion. In cash movements, the company had a total of 4.53 billion as operating cash flow.
Potential earnings growth for United Parcel Service Inc. (UPS)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/27/2021 quarter of the year, United Parcel Service Inc. recorded a total of 22.91 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 21.27% coming in sequential stages and their sales for the 07/27/2021 quarter reducing by -8.68%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 5.67 billion trying to sell their products during the last quarter, with the result yielding a gross income of 17.24 billion. This allows shareholders to hold on to 872.00M with the recently reported earning now reading 5.50 cents per share. This is a figure that compared to analyst’s prediction for their 07/27/2021 (2.77 cents a share).
Having a look at the company’s valuation, the company is expected to record 10.88 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on UPS sounds very interesting.
Is the stock of UPS attractive?
In related news, CHF Crp Aff, Com & Sustain Off, Lane Laura J sold 2,375 shares of the company’s stock in a transaction that recorded on Feb 26. The sale was performed at an average price of 157.93, for a total value of 375,092. As the sale deal closes, the Director, Hewett Wayne M. now bought 625 shares of the company’s stock, valued at 99,887. Also, Chief Info. & Engineering Off., Perez Juan R. sold 6,290 shares of the company’s stock in a deal that was recorded on Feb 23. The shares were price at an average price of 159.97 per share, with a total market value of 1,006,180. Following this completion of acquisition, the Chief Legal & Compliance Off, Brothers Norman M. Jr now holds 13,337 shares of the company’s stock, valued at 2,129,141.
15 out of 29 analysts covering the stock have rated it a Buy, while 9 have maintained a Hold recommendation on United Parcel Service Inc.. 3 analysts has assigned a Sell rating on the UPS stock. The 12-month mean consensus price target for the company’s shares has been set at $213.87.