5 Safe Stocks to Buy While Very Cheap - Seeking Alpha
United Parcel Service, Inc. (UPS) – Unfortunately for shareholders, the recent bear market has caused this stock to lose nearly all of its gains from the past 12 months. In fact, with cash per share of 5.75, UPS is clearly strong financially, but the problem remains that in this economy there is not much to invest in. Note that cash reserves are up by $1.321 billion since the beginning of 2011. With all this extra cash though, UPS has been able to post some nice dividends – dividend yield is currently 3.3%. For many investors though, there will still be a tough choice between UPS and FedEx (FDX), and valuation metrics are currently split both ways. Specifically, UPS beats FDX in P/E (15.27 vs. 16.48), but FDX beats UPS in PEG (1.29 vs. 0.77). FDX has also been in the news lately with the announcement that many of its shipping rates will be going up. We think this will benefit Big Brown greatly as FedEx’s current customers turn to UPS to keep costs down in this tough economy. Additionally, UPS has received props on another Seeking Alpha article, which notes the company’s high target price (currently $87.09). UPS also scored low risk in categories such as board, audit, compensation, and shareholder benefits.
United Parcel Service, Inc. (UPS) – Unfortunately for shareholders, the recent bear market has caused this stock to lose nearly all of its gains from the past 12 months. In fact, with cash per share of 5.75, UPS is clearly strong financially, but the problem remains that in this economy there is not much to invest in. Note that cash reserves are up by $1.321 billion since the beginning of 2011. With all this extra cash though, UPS has been able to post some nice dividends – dividend yield is currently 3.3%. For many investors though, there will still be a tough choice between UPS and FedEx (FDX), and valuation metrics are currently split both ways. Specifically, UPS beats FDX in P/E (15.27 vs. 16.48), but FDX beats UPS in PEG (1.29 vs. 0.77). FDX has also been in the news lately with the announcement that many of its shipping rates will be going up. We think this will benefit Big Brown greatly as FedEx’s current customers turn to UPS to keep costs down in this tough economy. Additionally, UPS has received props on another Seeking Alpha article, which notes the company’s high target price (currently $87.09). UPS also scored low risk in categories such as board, audit, compensation, and shareholder benefits.
