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Today's 11 O'Clock Stock: UPS

Joe Magyer
September 3, 2010

Welcome to "11 O'Clock Stock." Here at, we'll be finding a new great stock at 11 a.m. ET every weekday for 50 days. Better yet, we're so confident in the picks that we're investing $50,000 of the Fool's own money in them! To hear more about the series, click here to see a video from Motley Fool co-founder Tom Gardner. Can't make it at 11 a.m. ET? Come back to, and we'll have the article in our Top Stories section 24 hours a day.

Around the office, I'm known as a guy who likes wide moats priced at no-moat prices. Unfortunately, undervalued blue chips don't exactly rain from the heavens. Occasionally, though, they show up in boxes. Enter the world's largest package delivery company, United Parcel Service (NYSE: UPS  ) . And while UPS ships more than 15 million packages a day to customers across 200 countries and territories, today's lone special package has your name all over it.

Fast facts on UPS

Market Capitalization

$67.6 billion



Revenue (TTM)

$47.5 billion

Earnings (TTM)

$2.7 billion

Source: Capital IQ, a division of Standard & Poor's. TTM is trailing 12 months.

Break out the white board
Let's play a game. Describe to me a perfect anchor stock in your portfolio. You're obviously in the market for a durable competitive advantage, right? UPS offers that in spades, operating alongside rival FedEx (NYSE: FDX  ) as one of the select few global shippers capable of getting a package from Point A to Point B quickly, cheaply, and profitably. Barriers to entry in the shipping business are massive and will only continue to heighten as these aspiring duopolist