United Parcel Service Inc. (UPS): A Sound Choice For Income

United Parcel Service Inc.’s stock (NYSE:UPS) has been rated as Underweight by Morgan Stanley. This latest rating was contained in a recent research note published by the firm on December 12, 2019 and has set a $78 price target for the stock. Some experts on Wall Street have also posted a report on United Parcel Service Inc. (UPS) stock.

BMO Capital Markets rated the stock as a Market Perform in a research noted published on December 11, 2019. Wells Fargo rated the stock as a Outperform in a research note published on October 29, 2019.

As it stands, a total of 26 analysts are covering UPS stock, with 9 of them rating it as a Buy while 2 of them rating it as Overweight. 14 analysts meanwhile advised investors to Hold, 0 rated it as Underweight while the 1 rated it as a Sell. A look at the overall ratings means that United Parcel Service Inc. (UPS) stock has an average rating of Overweight.

United Parcel Service Inc. (UPS) which is currently valued at 101.52 billion, with the company publishing its last earnings report on 10/22/2019, for the recent quarter of 2019. In that quarter, the company recorded a revenue of 20.66 billion, which was lower than the forecast of 21.05 billion made by some analysts. For that same quarter, United Parcel Service Inc. (UPS) posted $1.94 earnings per share (EPS) which was above the analyst consensus estimate of $1.9 by $0.04, which represents an increase by 2.10%.

The stock market has a tendency to become sophisticated sometimes, even for seasoned investors and traders. Even when a trader got what he/she had expected, the market sometimes decides to move in the opposite direction. This volatility sometimes leads to some traders doubting and second-guessing their moves. This is why getting to know historical price performance, as well as both long-term and short-term trends, is very important. Over the past one week, UPS price has surged by 1.09%. A look at its price performance over the past three months sees the stock go up by 1.21%, while it has gain 11.04% over the past six months and 18.29% since the start of the year.

Let us now look at some of its likely support and resistance level. Recent research on United Parcel Service Inc. (UPS) has seen its stock trading -6.42% below its three-month high price. A look at the other side also sees stock trading +4.91% above its three-month low. A wider look sees UPS trading -6.42% below its 52-week high and 26.57% above from its 52-week low price.

Shareholders of the company sometimes like to find out how their investments are growing. United Parcel Service Inc. (UPS) has so far given an ROE of 121.50%. When the ROE is low, it means that the company isn’t generating enough profits. The Return on Assets (ROA) ratio meanwhile is an indication of how profitable a company is relative to the total asset it owns. United Parcel Service Inc. (UPS)’s ROA at the moment stands at 9.60%. Any company that is managing its assets better will have a higher return while one that manages assets poorly would result in low returns.

United Parcel Service Inc. (UPS) has a return on investment (ROI) of 22.50%. The higher the ROI percentage, the higher the profit exceeds the costs, thus analysts consider such investments as an overall gain. A negative ROI, however, means that the cost is higher than the profits, a scenario analysts consider as a net loss.

Let us now take a look at United Parcel Service Inc. (UPS)’s trading volatility. Its 7-day volatility is around 1.38%, while it has a monthly volatility of 1.44%. UPS has an ATR (Average True Range) of 1.88 and a beta factor of 1.17. The volatility of a stock is an indication of the stock’s drop or gain in case the wider market drops or surges. A beta score higher than 1 means that a stock is highly volatile while below 1 means that the volatility of a stock is low.

The price of UPS lifted by $0.52 during the normal trading session on Tuesday to trade at $117.27. The United Parcel Service Inc. (UPS) stock has a trading volume of 2.47 million shares, which is low, compared to its average daily volume of 2.76M shares.