UPS came out the end of last week and said "its first quarter earnings per share would be much higher than it had expected and raised its outlook for the year". I know what your saying. "yea so what?" Well thats not the only thing that is blowing up my skirt.
In the past 3 months, 4 analyst's have come out and given UPS an upgrade to either buy or outperform. Also if you look at UPS's competiton Fedex (FDX) they are dominating them. UPS has better operating margins and makes much more money. Practically $15 billion more. The biggest selling point to me is the fact that there has been "significant acceleration" in international shipping with daily volumes up 18% in the quarter compared with a year ago. This is huge and will be huge for UPS and it's business.
One drawback is that the company is a little overvalued. With a PEG ratio of over 2.6 and a P/E of 31.83 its not a buy and hold but rather a get in and get out.
Take a look and let me know.
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