Thursday, January 27, 2011

Stock Idea: United Parcel Service Inc. (UPS, $72.87)

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at Please visit!)

United Parcel Service
(UPS) pays an annual dividend of $1.88, which yields 2.58% based on a current stock price of $72.87. The beta is .91. The PE is high at 23.43. Projected 2010 earnings per share are $3.53, and eps growth for 2011 and 2012 has consensus projections of 18.4% and 15.3%.

The stock is just now rebounding up to a former trading range of approximately $68 - $85, where it stayed in 2003 through 2008, prior to the financial meltdown of 2008. I bought the stock recently at $72.80, and I have a sell order in at $84. I would expect it to stay in this former trading range for quite a while, and this presents a good opportunity to buy and sell several times.


The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also manages Goodfellow LLC, a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. See disclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.

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