At US$177, is it time to add United Parcel Service, Inc., (NYSE:UPS), to your Watch List?

Today, we’re going take a look to the well-established United Parcel Service, Inc.NYSE:UPS). Over the past few months, the company’s stock experienced a moderate share price increase in the teens range on the NYSE. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. What if the stock is still a bargain price? Let’s examine United Parcel Service’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for United Parcel Service

What is United Parcel Service’s Chance?

My valuation model suggests that the stock is currently fairly priced. It’s trading around 1.11% above my intrinsic value, which means if you buy United Parcel Service today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $175.06, there’s only an insignificant downside when the price falls to its real value. Are there any other opportunities to buy low? Given that United Parcel Service’s share is fairly volatile (i.e. The price movements of United Parcel Service are more volatile than the rest of market, so it is possible for the price to fall and give us the opportunity to purchase later. This is due its high beta, which can be a good indicator of volatility in share prices.

Is there any growth to be expected from United Parcel Service

Before buying shares of a company, investors looking to add growth to their portfolio might want to look at its prospects. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. However, with a relatively muted profit growth of 1.4% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for United Parcel Service, at least in the short term.

What does this mean for you?

Are you a shareholder? UPS’s future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. These factors have they changed since your last stock market analysis? If the stock falls below its true value, will you still be able to purchase?

Are you a potential investor? If you’ve been keeping an eye on UPS, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

It’s important to be aware of any potential risks if you are interested in investing more in this stock. You should be aware of the following: United Parcel Service is showing 2 warning signs in our investment analysis We are a bit uncomfortable with 1 of these.

To see our full list of over-priced United Parcel Service options, click here. 50 other stocks with a high growth potential.

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This article by Simply Wall St has a general nature. Our commentary is based on historical data, analyst forecasts and other unbiased information. We do not intend to provide financial advice. This analysis does not represent a recommendation to purchase or sell any stock and it does not consider your financial goals or financial situation. Our goal is to provide you with long-term, focused analysis based on fundamental data. Our analysis may not take into account the most recent price-sensitive company announcements and qualitative material. Simply Wall St holds no position in any of the stocks mentioned.

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