Buy, Sell or Hold: Is United Parcel Service Delivering for Investors?

We all know United Parcel Service (NYSE: UPS ) as the guys in the big brown trucks. There's a reason why they are always in such a hurry: They handle over 16 million packages a day worldwide. But what you might not know is their business model goes well beyond just being the world's largest package delivery company. With service to over 220 countries, the Atlanta-based company also offers Supply Chain Solutions, including freight forwarding, fulfillment and returns. So bringing a package to your door is just part of the story for "Big Brown" and its share price. But before I tell you whether or not to buy this big name bellwether, let's take a look at what keeps the wheels spinning at UPS. Online Shopping is the 'Driver' Despite the ongoing saga with the struggling world economies, UPS has fared remarkably well, showing strength and resiliency rather than weakness. Part of the reason is the robust growth of e-commerce in the U.S-which simply means more packages and higher sales. In its most recent report, earnings per share for the first quarter were $1.04, up 4% year-over-year. Domestic package revenues were $8.27 billion, growing 3.3% year-over-year while operating profit grew more than 9%. To the plus side, operating margin also expanded by 70 basis points. To continue reading, please click here...