Should United Parcel Service's Stock Still Be Sold Above $100? - Motley Fool
Three key factors were behind the original decision to consider selling UPS' stock above $100: its valuation, its balance sheet, and its dividend. Before the stock gets sold, all three should be reviewed again, in light of the new earnings the company just released, to see if the sell story is still as compelling.
If its share price continues to rise and gets past $120 by the end of this quarter, the decision to hold on will be revisited. Otherwise, this quarter of the year is huge for shipping companies like UPS thanks to holiday shopping. A strong quarter could result in either another upwards revision in the valuation estimate or an improvement in its balance sheet.
Three key factors were behind the original decision to consider selling UPS' stock above $100: its valuation, its balance sheet, and its dividend. Before the stock gets sold, all three should be reviewed again, in light of the new earnings the company just released, to see if the sell story is still as compelling.
If its share price continues to rise and gets past $120 by the end of this quarter, the decision to hold on will be revisited. Otherwise, this quarter of the year is huge for shipping companies like UPS thanks to holiday shopping. A strong quarter could result in either another upwards revision in the valuation estimate or an improvement in its balance sheet.
