Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Brown Cafe UPS Forum
The Latest UPS Headlines
Is UPS the Perfect Stock?
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="cheryl" data-source="post: 778107" data-attributes="member: 1"><p><strong><a href="http://www.fool.com/investing/general/2010/10/19/is-ups-the-perfect-stock.aspx" target="_blank">Is UPS the Perfect Stock? - Motley Fool</a></strong></p><p> </p><p>The recession hasn't been kind to UPS, which comes in with a score of 3. The shipping and delivery company is a bellwether for economic conditions, and when overall business activity is slow, UPS doesn't get the volume it needs to reap the biggest profits from its sophisticated and capital-intensive operational structure.</p><p> </p><p>UPS has followed a slightly different course from rival FedEx (NYSE: FDX). UPS's higher debt levels boost its returns on equity, but they also bring more risk from leverage if things go badly.</p><p> </p><p>What some don't realize about UPS, however, is that it doesn't just deliver packages. It also has a freight services business that competes with truckload and less-than-truckload carriers like YRC Worldwide (Nasdaq: YRCWD) and Landstar System (Nasdaq: LSTR). UPS's freight and supply chain segment represented 16% of its overall revenue in 2009, but it's a low-margin business that pulls down UPS's overall profit margins.</p><p> </p><p>It's easy to conclude that once a global recovery takes hold, UPS should benefit. But the stock's valuation already seems to be pricing that recovery in. With shares already fairly rich, UPS may not rise as much as other beaten-down transportation companies. But for conservative investors who don't want a whole lot of volatility, UPS offers stability and a good dividend.</p></blockquote><p></p>
[QUOTE="cheryl, post: 778107, member: 1"] [B][URL="http://www.fool.com/investing/general/2010/10/19/is-ups-the-perfect-stock.aspx"]Is UPS the Perfect Stock? - Motley Fool[/URL][/B] The recession hasn't been kind to UPS, which comes in with a score of 3. The shipping and delivery company is a bellwether for economic conditions, and when overall business activity is slow, UPS doesn't get the volume it needs to reap the biggest profits from its sophisticated and capital-intensive operational structure. UPS has followed a slightly different course from rival FedEx (NYSE: FDX). UPS's higher debt levels boost its returns on equity, but they also bring more risk from leverage if things go badly. What some don't realize about UPS, however, is that it doesn't just deliver packages. It also has a freight services business that competes with truckload and less-than-truckload carriers like YRC Worldwide (Nasdaq: YRCWD) and Landstar System (Nasdaq: LSTR). UPS's freight and supply chain segment represented 16% of its overall revenue in 2009, but it's a low-margin business that pulls down UPS's overall profit margins. It's easy to conclude that once a global recovery takes hold, UPS should benefit. But the stock's valuation already seems to be pricing that recovery in. With shares already fairly rich, UPS may not rise as much as other beaten-down transportation companies. But for conservative investors who don't want a whole lot of volatility, UPS offers stability and a good dividend. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Brown Cafe UPS Forum
The Latest UPS Headlines
Is UPS the Perfect Stock?
Top