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 e-commerce boom. As governments around the world ordered quarantines to slow the virus, individuals and businesses have turned to UPS for their packaging and shipping needs.
As a company optimized for rapid ground parcel delivery, UPS rose to the challenge and benefited from soaring stock prices. While the company initially collapsed along with the rest of the market in March, it has been nothing but good news for investors since then.
Now that winter is upon us and businesses are focusing more than ever on Christmas items, UPS is poised to enjoy one of the busiest shipping seasons of all time. With record numbers of seniors shying away from the physical experience to join the millions who are already shopping on Amazon Prime and Google, the company appears to have a lot to look forward to.
But the real question is: what does this mean for their stock price – and your investment portfolio?
Q.ai may be able to answer that. Our AI (artificial intelligence) is here to analyze the details of UPS performance – and now we’re ready to share our results.
Without further ado, let’s see what the numbers have to say for October.
Sign up for the free TBEN AI Investor newsletter here to join an exclusive community of AI investors and get high-end investment ideas before the markets open.
United Parcel Service, Inc (UPS) by the numbers
UPS closed 0.29% lower on Thursday, ending the day with 3 million trades at $ 174.04 per share. The company has benefited from an overall continuation of rising stock prices over the past month, as evidenced by Thursday’s gain to the 22-day average of $ 167.80.
Overall, the business is up over 53% for the year, a trend that looks likely to continue into the holiday shopping season.
The company also saw a 4.4% increase in revenue in the last fiscal year, with more than 16.4% in the last three. That took UPS from nearly $ 66.6 billion in revenue in 2017 to nearly $ 74.1 billion last year.
Not all of the company’s financial data reflects this good news, however.
For example, the company’s operating profit saw only a moderate increase in the last fiscal year to 1.75%. And, when you look at the past three years, UPS operating profit has gone from $ 6.6 billion to about $ 5.5 billion.
Additionally, UPS’s EPS also fell from $ 5.61 to $ 5.11 last year. The company’s ROE has also dropped dramatically, from 675% three years ago to 140% in the last fiscal year.
However, not all the news is bad. With the company’s near-term outlook on the rise, UPS is trading with a 12-month forecast P / E of 23.33, and revenue is expected to increase 1.4% next year.
So what’s the verdict?
UPS is one of the largest logistics and shipping companies in the world, and is currently riding an unprecedented stock market even as other companies struggle to keep their doors open.
However, just because a business is busy doesn’t mean its action is worth the price.
This is where Q.ai’s AI comes in.
Our artificial intelligence analyzed UPS financial data and found that the shipping company’s rates were slightly below average.
While the company scored an A in low momentum volatility, it performed poorly in other metrics, with C’s in growth and quality and a big F in technique.
So UPS deserves no better than a neutral rating from our AI for the second half of October.
Invest at your own risk.
Did you like what you have read? Sign up for our free TBEN AI Investor newsletter here to get AI-powered investment ideas every week. For a limited time, subscribers can join an exclusive slack group to get these ideas before the markets open.