Analysts remain somewhat bullish on UPS stock, with 13 of 30 giving the shares a Buy or Strong Buy rating and 15 others rating the stock at Hold. At a share price of around $162.50, the upside potential based on a median price target of $199.00 is 22.5%. At the high price target of $251.00, the upside potential is 54.5%.
Analysts expect UPS to report third-quarter revenue of $24.33 billion, down about 1.8% sequentially and 5% lower year over year. Adjusted EPS are pegged at $2.85, down 13.3% sequentially but up about 5.2% year over year. For the full 2022 fiscal year, analysts are looking for EPS of $12.78, up 5.4%, on sales of $101.64 billion, up 4.5%.
UPS stock trades at about 12.7 times expected 2022 EPS, 12.9 times estimated 2023 earnings of $12.63 and 12.3 times estimated 2024 earnings of $13.24 per share. The stock’s 52-week range is $154.87 to $233.72. UPS pays an annual dividend of $6.08 (yield of 3.78%). Total shareholder return for the past 12 months was negative 16.2%.
Valero Energy
Oil refiner and product marketer Valero Energy Corp. (NYSE: VLO) has seen its share price increase by about 55% over the past year. The 52-week low was posted in mid-December, and the share price had more than doubled by mid-June. Since then, however, shares are down about 13%.
Earlier this month, California Energy Commission Chairman David Hochschild asked the state’s refiners why pump prices had surged to more than $6.40 a gallon when crude prices dropped by $10 a barrel. Hochschild also wants to know why refinery profits nearly tripled in September when the price of crude to refineries fell by more than 20%. In a response, Valero cited maintenance and supply issues.
Of the 20 analysts covering the stock, 15 have a Buy or Strong Buy rating and four have a Hold rating. At a share price of around $125.50, the upside potential based on a median price target of $135.00 is 7.6%. At the high price target of $158.00, the upside potential is around 25.9%.
Analysts are forecasting third-quarter revenue of $41.16 billion, down 20.3% sequentially but up 39.4% year over year. Adjusted EPS are pegged at $6.94, down 39% sequentially and up nearly 470% year over year. For the full 2022 fiscal year, current estimates call for EPS of $25.43, up 805.1%, on revenue of $174.36 billion, up 53%.
Valero stock trades at about 4.9 times expected 2022 EPS, 8.1 times estimated 2023 earnings of $15.47 and 10.9 times estimated 2024 earnings of $11.52 per share. The stock’s 52-week range is $65.13 to $146.81. The company pays an annual dividend of $3.92 (yield of 3.15%). Total shareholder return for the past 12 months was about 59.4%.
Originally posted at 24/7 Wall St.
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