Consider tracking the economic recovery with UPS

Discussion in 'The Latest UPS Headlines' started by cheryl, Apr 8, 2009.

  1. cheryl

    cheryl I started this. Staff Member

    Consider tracking the economic recovery with UPS - Blogging Stocks

    United Parcel Service isn't a 'back up the truck' play, but it is a suitable position for investors who can tolerate moderate risk. Here's why:

    One could make a strong case that United Parcel Service, Inc. (NYSE: UPS) deserves to trade at the low end of it valuation, at a p/e of 10 or 12, instead of the current 18, given weak demand, and a likely continued drop in package delivery volume in Q2 and Q3. But the view from here argues institutional investors aren't likely to take that stance.