Topic: How To Invest

Pat: Could you give me your recommendation on UPS? Thanks.

Article Excerpt

United Parcel Service, $85.77, symbol UPS on New York (Shares outstanding: 953.5 million; Market cap: $81.8 billion; www.ups.com), is the world’s largest air and ground courier. The Atlanta-based company also provides specialized transportation and logistics services. UPS operates throughout the U.S. and in over 220 other countries and territories. However, the U.S. supplies 75% of its revenue. The company has a long history of growing by acquisition. However, it had to abandon its recent $6.8-billion purchase of TNT Express, one of the largest European couriers, because competition regulators blocked the deal. As a result, UPS had to pay a $268-million break fee. In the three months ended March 31, 2013, UPS’s revenue rose 2.3%, to $13.4 billion from $13.1 billion a year earlier. The company saw increased shipments in the U.S., particularly as more consumers made online purchases. It also raised its rates. Revenue from its international operations was flat, as the weaker European and Asian economies have prompted companies to use…