Top 5 Transportation Companies To Watch For 2015: United Parcel Service Inc.(UPS)
United Parcel Service, Inc., a package delivery company, provides transportation, logistics, and financial services in the United States and internationally. It operates in three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. Domestic Package segment engages in the time-definite delivery of letters, documents, and packages in the United States. The International Package segment offers air and ground delivery of small packages and letters to approximately 220 countries and territories, including shipments outside the United States, as well as shipments with either origin or distribution outside the United States; export services; and domestic services move shipments within a country?s borders. The Supply Chain & Freight segment provides forwarding and logistics services, such as supply chain design and management, freight distribution, customs brokerage, mail, and consulting services in approximately 195 countries and territorie s; and less-than-truckload and truckload services to customers in North America. In addition, the company offers various technology solutions for automated shipping, visibility, and billing; information technology systems and distribution facilities to various industries comprising healthcare, technology, and consumer/retail; and a portfolio of financial services that provides customers with short-term working capital, government guaranteed lending, global trade financing, credit cards, and export financing. It operates a fleet of approximately 99,800 package cars, vans, tractors, and motorcycles; an air fleet of 527 aircraft; and 33,800 containers used to transport cargo in its aircraft. The company was founded in 1907 and is headquartered in Atlanta, Georgia.
Advisors' Opinion:- [By Laura Brodbeck]
Tuesday
Earnings Expected: Express Scripts Holding Company (NASDAQ: ESRX), United Parcel Service, ! Inc. (NYSE: UPS), Pfizer Inc. (NYSE: PFE), Aetna Inc. (NYSE: AET), Merck & Company, Inc. (NYSE: MRK), Amgen Inc. (NASDAQ: AMGN) Economic Releases Expected: Spanish retail sales, British consumer credit, the U.S. Redbook, Japanese industrial productionWednesday
- [By Vanina Egea] oys parallel networks to manage each unit separately. Moreover, FedEx handled an average of 8.8 million packages daily through its express and ground units at the domestic level, while UPS delivered 14.4 million in calendar 2013. Further, 12.1 million of its daily parcels were moved through its higher-margin ground service, almost doubling those delivered by FedEx in the same segment.
Profit Enhancers
In order to improve its performance levels, UPS has developed a number of initiatives. In 2013, the company announced the expansion of UPS Worldwide Expedited Service to reach more than 220 countries from its present 145 destinations. The firm also introduced route optimization software ORION, which will save fuel and optimize delivery routes. And, by the end of 2014, it aims to buy 700 liquefied natural gas vehicles and construct four refueling stations to further empower its ground operations.
In addition, the company is expanding its fast-growing health care business onto the emerging markets of China, India and Japan, establishing distribution facilities in the Asia-Pacific region. And to strengthen its European healthcare network, the firm acquired UK Polar Speed in 2014, which provides temperature-sensitive pharmaceutical supply chain solutions. Furthermore, UPS increased its rates for ground, air and international and air freight within and between the U.S., Canada and Puerto Rico by 4.9% for 2014.
A Sturdy Investment
UPS expects diluted earnings per share to be in the range of $5.05 to $5.30 in 2014, which represents growth of 11% to 16% in relation to 2013 adjusted earnings per share. As for volume, it forecasts 3% to 4% growth of the daily average, wit! h exports! reaching 4% to 6% increase. Additionally, operating margin is expected to be around 14%.
Further, the firm continues to enhance shareholders returns through permanent stocks repurchases and increased dividends. Its stock trades at 21.3 its trailing earnings
- [By Rich Smith]
UPS (NYSE: UPS ) was an early entrant into the national move to use more natural gas in transportation vehicles, experimenting with the fuel for more than 10 years, and making a big buy of trucks powered by engines from nat-gas engine pioneer Westport Innovations (NASDAQ: WPRT ) back in 2011. As we see this week, UPS's enthusiasm for the technology hasn't waned.
source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/top-5-transportation-companies-to-watch-for-2015.html
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