We recently issued an updated report on United Parcel Service, Inc. (UPS - Free Report) .
The company is being aided by a significant increase in home deliveries amid the prevalent coronavirus pandemic. Notably, the need for door-to-door delivery of essentials during this crisis is increasing. Also, UPS Airlines, one of the largest cargo carriers across the globe, is aided by the increase in e-commerce sales amid the plaguing pandemic. UPS Airlines expanded its fleet by adding MD-11 and Boeing 747-8 freighter jets. With many passenger airlines (usually carrying freight as well as passenger luggage) currently shrinking their fleets due to tepid air-travel demand, cargo carriers like UPS Airlines are flying a lot of packages.
The company has a strong liquidity position. The company exited the June quarter with cash and equivalents of $9,216 million, above its current debt of $3,749 million. This suggests that it has enough cash to meet its current debt obligations. Also, UPS' current ratio at the end of second-quarter 2020 was 1.24, up 13.8% year over year. This liquidity ratio measures a company's ability to pay up its short-term liabilities.
Meanwhile, decline in overall adjusted profit at UPS in first-half 2020 are worrisome. Notably, the metric declined 6.5% due to the double digit decline at the Supply Chain & Freight (down 12.2%) and U.S. domestic Package (down 15.8%) units. The downside was mainly due to coronavirus-induced supply chain disruptions. Moreover, UPS expects U.S. Domestic average daily volume growth to be lower in second-half 2020, from 22.8% witnessed in the June quarter.
Zacks Rank & Other Stocks to Consider
UPS currently carries a Zacks Rank #2 (Buy).
Investors interested in the Zacks Transportation sector can also consider some other top-ranked stocks like Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , Canadian Pacific Railway Limited (CP - Free Report) and Werner Enterprises, Inc. (WERN - Free Report) . Knight-Swift sports a Zacks Rank #1(Strong Buy), while Canadian Pacific and Werner carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Canadian Pacific and Werner is pegged at 15%, 8% and 8.5%, respectively.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
We recently issued an updated report on United Parcel Service, Inc. (UPS - Free Report) .
The company is being aided by a significant increase in home deliveries amid the prevalent coronavirus pandemic. Notably, the need for door-to-door delivery of essentials during this crisis is increasing. Also, UPS Airlines, one of the largest cargo carriers across the globe, is aided by the increase in e-commerce sales amid the plaguing pandemic. UPS Airlines expanded its fleet by adding MD-11 and Boeing 747-8 freighter jets. With many passenger airlines (usually carrying freight as well as passenger luggage) currently shrinking their fleets due to tepid air-travel demand, cargo carriers like UPS Airlines are flying a lot of packages.
The company has a strong liquidity position. The company exited the June quarter with cash and equivalents of $9,216 million, above its current debt of $3,749 million. This suggests that it has enough cash to meet its current debt obligations. Also, UPS' current ratio at the end of second-quarter 2020 was 1.24, up 13.8% year over year. This liquidity ratio measures a company's ability to pay up its short-term liabilities.
Meanwhile, decline in overall adjusted profit at UPS in first-half 2020 are worrisome. Notably, the metric declined 6.5% due to the double digit decline at the Supply Chain & Freight (down 12.2%) and U.S. domestic Package (down 15.8%) units. The downside was mainly due to coronavirus-induced supply chain disruptions. Moreover, UPS expects U.S. Domestic average daily volume growth to be lower in second-half 2020, from 22.8% witnessed in the June quarter.
Zacks Rank & Other Stocks to Consider
UPS currently carries a Zacks Rank #2 (Buy).
Investors interested in the Zacks Transportation sector can also consider some other top-ranked stocks like Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , Canadian Pacific Railway Limited (CP - Free Report) and Werner Enterprises, Inc. (WERN - Free Report) . Knight-Swift sports a Zacks Rank #1(Strong Buy), while Canadian Pacific and Werner carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Canadian Pacific and Werner is pegged at 15%, 8% and 8.5%, respectively.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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