UPS: A classic economic recovery play - Blogging Stocks
Not all stocks rise on cue. Despite a decent Q3 EPS performance of 55 cents, United Parcel Service, Inc.'s (NYSE: UPS) shares have lagged, but I'm nevertheless Reiterating my Buy rating for the company, first recommended on April 7, 2009 at a price of $51.28. Here's why:
Increased pricing power, in some delivery segments, and higher volumes will ensue in the quarters ahead, as the U.S./global economic recoveries strengthen. Overall, revenue should increase 7-9% in FY2010 after a difficult FY2009. The First Call FY2009/FY2010 EPS estimates for UPS are $2.17 to $2.70.
Not all stocks rise on cue. Despite a decent Q3 EPS performance of 55 cents, United Parcel Service, Inc.'s (NYSE: UPS) shares have lagged, but I'm nevertheless Reiterating my Buy rating for the company, first recommended on April 7, 2009 at a price of $51.28. Here's why:
Increased pricing power, in some delivery segments, and higher volumes will ensue in the quarters ahead, as the U.S./global economic recoveries strengthen. Overall, revenue should increase 7-9% in FY2010 after a difficult FY2009. The First Call FY2009/FY2010 EPS estimates for UPS are $2.17 to $2.70.