UPS has long been a household name – but it was the 2020 pandemic that turned this logistics giant into a star.
The Atlanta, Georgia-based shipping company has spent much of the past few months capitalizing on the most recent ecommerce boom. As governments around the world ordered quarantines to slow the virus, individuals and businesses turned to UPS for their packing and shipping needs.
As a company optimized for rapid ground package delivery, UPS answered the challenge – and enjoyed soaring stock prices as a result. Whereas the company initially crashed with the rest of the market back in March, it’s been nothing but good news for investors since then.
Now, with winter fast upon us and businesses turning their focus to holiday merchandise earlier than ever, UPS is poised to embrace one of the busiest shipping seasons ever. As record numbers of older individuals eschew the brick-and-mortar experience in favor of joining the millions already shopping on Amazon Prime and Google, the company seems to have plenty to look forward to.
But the real question is: what does this mean for their stock prices – and your investment portfolio?
Q.ai might be able to answer that. Our AI (artificial intelligence) is here to analyze the nitty-gritty details of UPS’s performance – and now, we’re ready to share our results.
Without further ado, let’s see what the numbers have to say for the month of October.
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United Parcel Service, Inc (UPS) By the Numbers
UPS closed down 0.29% on Thursday, ending the day on the back of 3 million trades at $174.04 per share. The company has enjoyed an overall continuation of its rising stock prices in the last month, as evidenced in Thursday’s gain over the 22-day average of $167.80.
Overall, the company is trading up over 53% for the year, a trend that appears likely to continue into the holiday shopping season.
The company has also seen a 4.4% increase in revenue in the last fiscal year, with over 16.4% over the past three. This has brought UPS from almost $66.6 billion in revenue in 2017 to nearly $74.1 billion in the past year.
However, not all of the company’s financial data reflects such good news.
For instance, the company’s operating income has seen only a moderate increase in the last fiscal year at 1.75%. And, when you look at the last three years, UPS’s operating income has shrunk from $6.6 billion to about $5.5 billion.
Furthermore, UPS’s EPS has slipped, as well, dropping from $5.61 to $5.11 in the last year. The company’s ROE has fallen dramatically as well, from 675% three years ago to 140% in the last fiscal year.
However, the news isn’t all bad. With the company’s short-term prospects looking up, UPS is trading with a forward 12-month P/E of 23.33, and their revenue is expected to grow 1.4% in the next year.
So, What’s the Verdict?
UPS is one of the largest logistics and shipping companies in the world, and they’re currently riding an unprecedented stock market high even as other businesses struggle to keep their doors open.
However, just because a company is busy doesn’t mean that their stock is worth the price.
That’s where Q.ai’s AI comes in.
Our artificial intelligence has analyzed UPS’s financial data and found that the shipping company rates slightly below average.
Although the company earned an A in Low Momentum Volatility, it performed poorly in other metrics, with C’s in Growth and Quality Value and a big, fat F in Technicals.
Thus, UPS merits no better than a Neutral rating from our AI for the second half of October.
Invest at your own risk.
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