Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, package delivery company United Parcel Service (NYSE: UPS ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at UPS' business and see what CAPS investors are saying about the stock right now.
UPS facts
| Headquarters (Founded) |
Atlanta (1907) |
| Market Cap |
$69.5 billion |
| Industry |
Air delivery and freight services |
| Trailing-12-Month Revenue |
$52.4 billion |
| Management |
Chairman/CEO D. Scott Davis (since 2008)
CFO Kurt Kuehn (since 2008)
|
| Return on Capital (Average, Past 3 Years) |
17.6% |
| Cash/Debt |
$5.64 billion / $12.2 billion |
| Dividend Yield |
2.9% |
| Competitors |
FedEx (NYSE: FDX ) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 88% of the 1,718 members who have rated UPS believe the stock will outperform the S&P 500 going forward. These bulls include All-Star dividendsrus, who is ranked in the top 10% of our community, and mwlove.
Late last month, dividendsrus tapped UPS as a timely bargain pick:
[Amazon.com] stock is booming. The post office is dying. And yet UPS stock is tanking? Looks like a buying opportunity to me.
UPS even boasts a solid operating margin of 10.8%. That's higher than that of main rival FedEx (5.9%), as well as other shipping and logistics plays like C.H. Robinson (Nasdaq: CHRW ) (7%) and Expeditors International of Washington (Nasdaq: EXPD ) (9.3%).
CAPS member mwlove expands on the UPS outperform argument:
Great value here. I actually bought it at a higher level, but I'm comfortable because UPS is well-run, has good margins, and pays a great dividend. Its current malaise is due to fears of recession and, paradoxically, high fuel prices. Fuel prices are now falling, business is expanding, and UPS will fly us to the moon.
What do you think about UPS, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track UPS? Add it to your watchlist.
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