What’s Driving UPS Stock Higher? - Forbes
Despite seeing a 9% rise over the last six months, at the current price of around $212 per share, we believe UPS stock (NYSE: UPS) has more to go. UPS stock rose from levels of $195 in early September 2021 to $233 in early February 2022 before cooling off to $212 currently. The 9% move for UPS in the last six months compares with -3% returns for the broader S&P500 index. Looking at the longer term, UPS stock is up a solid 118% from levels seen in late 2018. Our dashboard provides more details on the factors behind this move over the last three years.
Now, much of this growth over the last three years was driven by the company’s P/S ratio, which rose from 1.1x in 2018 to 1.8x currently. UPS’ revenue increased 42% over the same period. The pandemic resulted in higher revenues in 2020 and 2021, as people stayed indoors with shelter-in-place restrictions and resorted to e-commerce for their needs, resulting in very high demand for residential ground shipments for UPS. The company’s revenue of $97.3 billion in 2021 compares with $71.9 billion in 2018. The total shares outstanding increased marginally to 874 million currently, compared to 866 million in 2018. This meant that revenue per share rose 41% to $111.33 in the last twelve months, vs. $82.95 in 2018.
Despite seeing a 9% rise over the last six months, at the current price of around $212 per share, we believe UPS stock (NYSE: UPS) has more to go. UPS stock rose from levels of $195 in early September 2021 to $233 in early February 2022 before cooling off to $212 currently. The 9% move for UPS in the last six months compares with -3% returns for the broader S&P500 index. Looking at the longer term, UPS stock is up a solid 118% from levels seen in late 2018. Our dashboard provides more details on the factors behind this move over the last three years.
Now, much of this growth over the last three years was driven by the company’s P/S ratio, which rose from 1.1x in 2018 to 1.8x currently. UPS’ revenue increased 42% over the same period. The pandemic resulted in higher revenues in 2020 and 2021, as people stayed indoors with shelter-in-place restrictions and resorted to e-commerce for their needs, resulting in very high demand for residential ground shipments for UPS. The company’s revenue of $97.3 billion in 2021 compares with $71.9 billion in 2018. The total shares outstanding increased marginally to 874 million currently, compared to 866 million in 2018. This meant that revenue per share rose 41% to $111.33 in the last twelve months, vs. $82.95 in 2018.
