Why UPS Is Poised to Outperform
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, package delivery giant United Parcel Service has earned a respected four-star ranking.
With that in mind, let's take a closer look at UPS and see what CAPS investors are saying about the stock right now.
UPS facts
Headquarters (founded) | Atlanta (1907) |
Market Cap | $78.8 billion |
Industry | Air freight and logistics |
Trailing-12-Month Revenue | $54.1 billion |
Management | Chairman/CEO D. Scott Davis (since 2008) CFO Kurt Kuehn (since 2008) |
Return on Capital (average, past 3 years) | 35.4% |
Cash/Debt | $7.9 billion / $12.9 billion |
Dividend Yield | 2.9% |
Competitors | FedEx United States Postal Service |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 88% of the 1,816 members who have rated UPS believe the stock will outperform the S&P 500 going forward.
Just yesterday, one of those Fools, 3ni278aosdj8hebj, touched on the tailwinds working in UPS' favor:
As the postal service does worse, its competitors will do better. While the market goes through its cycles, people will turn to companies like UPS for stability in their portfolios. Amazon may not always be the powerhouse when it comes to online shopping, as long as eBay is a viable competitor, and what's stopping Google from trying to take a slice of Amazon's pie?
For better or worse, society is turning more and more toward online shopping -- and as they do they're helping UPS grow.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, UPS may not be your top choice.
We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.
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The article Why UPS Is Poised to Outperform originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, eBay, FedEx, Google, and United Parcel Service. The Motley Fool owns shares of Amazon.com, eBay, and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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