Should You Be Adding United Parcel Service (NYSE:UPS) To Your Watchlist Today?

cheryl

I started this.
Staff member

Should You Be Adding United Parcel Service (NYSE:UPS) To Your Watchlist Today? - Yahoo

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it completely lacks a track record of revenue and profit. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy.

If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in United Parcel Service (NYSE:UPS). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. Conversely, a loss-making company is yet to prove itself with profit, and eventually the sweet milk of external capital may run sour.

How Quickly Is United Parcel Service Increasing Earnings Per Share?​

If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS). That means EPS growth is considered a real positive by most successful long-term investors. As a tree reaches steadily for the sky, United Parcel Service's EPS has grown 33% each year, compound, over three years. If the company can sustain that sort of growth, we'd expect shareholders to come away winners.
 

olroadbeech

Happy Verified UPSer
I put in $10 a week for can not remember how many years. Reinvest dividends.

It's a crazy amount now for how little I contributed. Just gonna pass it down to my youngest son ( if that is possible )
It's fun watching it grow.
 
Top