Join        Login             Stock Quote

Top Stocks 2013: United Parcel Service

 January 03, 2013 10:48 AM

by Ingrid Hendershot, editor Hendershot Investments

United Parcel Service (UPS) is a leading global package delivery company that provides transportation, logistics, and financial services in the United States and internationally.

Year-to-date in 2012, UPS has generated free cash flow in excess of $3.6 billion. The company repurchased 18.5 million shares for approximately $1.4 billion at an average price of $75.68 per share and paid dividends totaling $1.6 billion, a 10% increase over the prior year.

The Big Brown dividend currently delivers a solid 3.1% yield. The company ended the third quarter of 2012 with $9 billion in cash and marketable securities, which will be used to fund the acquisition of TNT Express, which management expects to close in early 2013, along with debt repayment.

[Related -Upside Calls Active On United Parcel Service, Inc. (UPS) And Put Options Active In Crocs, Inc. (CROX)]

Capitalizing on the low interest rate environment, UPS issued $1.75 billion of debt during the quarter, which was oversubscribed more than seven-fold with an average interest rate of 2.4% and an average 13-year maturity.

"UPS updated its full-year 2012 guidance to adjusted EPS in the range of $4.55-$4.65, which represents 5%-7% growth over 2011 adjusted results.

UPS expects to hit on all cylinders in the fourth quarter with operating margins expected to expand in all three business segments supported by daily volume growth of 3%.

[Related -C.H. Robinson Worldwide, Inc. (CHRW): $500 Million In Share Buybacks Could Send This Stock Soaring]

Long-term investors should box up UPS, a HI-quality market leader with strong cash flows and growing dividends.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageThe Global Credit Market Is Now A Lit Powderkeg

Although the Street seems to agonize over equity valuations and recent price volatility, as I see it the read on...

article imageBacktesting With Synthetic and Resampled Market Histories

We’re all backtesters in some degree, but not all backtested strategies are created read on...

article imageThe Missing Lesson: Unfriend the Trend

Beware forecasts that simply extrapolate the year’s start read on...

article imageHave The Saudis Miscalculated The Impact Of Lower Crude Prices On US Production?

In 2014 the Saudis could no longer accept the loss of crude oil market share as the North American read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.