UPS delivers

You have to love United Parcel Service (UPS).  They are continuing to grow in the international market by almost 20% a year,  Their huge cash position allows them to buy back shares; over 7 million share have been bought back already.  They are beating the pants off the US Postal Service which seems; at least in my mail box, to only delivers junk mail these days.

United Parcel Service, Inc. is the world's largest express carrier, the world's largest package delivery company and a leading global provider of specialized transportation and logistics services. Their primary business is the time-definite delivery of packages and documents throughout the United States and in over 200 other countries and territories. They have established a vast and reliable global transportation infrastructure,developed a comprehensive, competitive and guaranteed portfolio of services and consistently supported these services with advanced technology.

Barchart's 13 technical momentum indicators are all signalling a buy for a 100% buy signal.  The stock is trading around 69.69 which is 3.55% above its 50 day moving average of 67.71.  The stock has a 14 day Relative Strength Index of 59.90% and it is on the rise.

Wall Street brokerages believe this price momentum is warranted and has published 21 buy, 6 hold and no negative reports for their clients.  Sales are forecasted to increase 9.50% this year and 7.70% next year.  As sales increase a lot of that will flow to the bottom line.  Analysts estimate earnings will increase by 52.80% this year, 17.80% next year and continue for 5 years at an annual rate of 12.83%.

The general investor is taking notice and on Motley Fool votes 1398 to 221 that the stock will beat the market.  The more experienced All Stars agree with a vote of 400 to 49.

Fool follows a lot of Wall Street columnists and note that all of the last 27 articles on the company have been positive.

For long term investors this might be the right time to add this to your core holdings:

• Recent price momentum shows that the stock hasn't topped out
• Wall Street Analysts forecasts double digit increases in earnings for at least 5 years out
• Large cash position will allow stock buy backs to continue
• 100% Barchart technical buy signal
• Large and positive following by both Wall Street and the general investor

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.