United Parcel shares rebound on Friday, adjusted profit to be increased by automation and expansion efforts by 2022, company says

According to an announcement by United Parcel Service Inc (UPS) on Thursday, the company expects its adjusted earnings per share to increase between $1.00 and $1.20 by 2022 as a result of automation and expansion efforts.

The entire capital spending project, involving facility automation and expansion, is estimated at $20 billion.

United Parcel shares closed higher for the third time in the past seven trading sessions in New York on Friday. The stock went up 0.58% ($0.69) to $120.39, after touching an intraday low at $119.01, or a price level not seen since August 15th ($117.86).

Shares of United Parcel Service Inc have risen 1.04% so far in 2018 compared with an 8.65% gain for the underlying index, S&P 500 (SPX).

In 2017, United Parcel’s stock surged 3.93%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

The package delivery company said it expected to boost its sorting capacity in the United States by between 350 000 and 400 000 pieces per hour, every year up to 2020.

“Transformation will lift our earnings, as we generate higher-quality revenue,” David Abney, United Parcels Chief Executive Officer, was quoted as saying by Reuters.

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding United Parcel’s stock price, have a median target of $128.00, with a high estimate of $150.00 and a low estimate of $92.00. The median estimate represents a 6.32% upside compared to the closing price of $120.39 on September 14th.

The same media also reported that 13 out of 24 surveyed investment analysts had rated United Parcel’s stock as “Hold”, while 9 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, Mondays levels of importance for the United Parcel stock are presented as follows:

R1 – $120.56
R2 – $120.73
R3 (Range Resistance – Sell) – $120.90
R4 (Long Breakout) – $121.41
R5 (Breakout Target 1) – $122.00
R6 (Breakout Target 2) – $122.26

S1 – $120.22
S2 – $120.05
S3 (Range Support – Buy) – $119.88
S4 (Short Breakout) – $119.37
S5 (Breakout Target 1) – $118.78
S6 (Breakout Target 2) – $118.52

By using the traditional method of calculation, the weekly levels of importance for United Parcel Service Inc (UPS) are presented as follows:

Central Pivot Point – $121.50
R1 – $123.98
R2 – $127.58
R3 – $130.06
R4 – $132.55

S1 – $117.90
S2 – $115.42
S3 – $111.82
S4 – $108.23