UNP to MANH: Top supply chain stocks to watch amid global concerns

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UNP to MANH: Top supply chain stocks to watch amid global concerns

Top supply chain stocks to watch amid global concerns
Image source: © Enanuchit | Megapixl.com

Highlights

  • Union Pacific Corporation (NYSE: UNP) has a dividend yield of 1.78%, with an annualized dividend of US$4.72.
  • United Parcel Service, Inc. (NYSE: UPS) has a P/E ratio of 14.6 and a dividend yield of 2.78%. 
  • Manhattan Associates, Inc. (NASDAQ: MANH) has a P/E ratio of 81.65, and its stock grew 21.42% in one year.

The supply chain stocks came into prominence during last year’s pandemic when supply disruptions peaked. They continue to draw attention as supply fears linger due to the Russia-Ukraine conflict. Commodity prices such as food, oil, and metal have skyrocketed.

The US Inflation is currently at a 40-year high, accelerated by the supply constraints. The ongoing geopolitical tension has again brought the global supply chain issue to the fore. Against this backdrop, supply chain stocks might see a business boost due to demand. These companies are engaged in freight, transportation, and supply-chain business.  

Here we discuss five supply chain stocks worth exploring amid the emerging opportunities. 

Union Pacific Corporation (NYSE: UNP)

Price range in one year: US$270.14 to US$195.68
Closing price on March 23, 2022: US$267.68

Union Pacific is a public railroad company in North America. It is headquartered in Omaha, Nebraska. It operates more than 30,000 miles of track in the US and hauls coal, industrial products, agriculture goods, chemicals, intermodal containers, and automotive goods. 

The company will announce its first-quarter financial results on April 21, 2022.

For the fiscal year ended December 31, 2021, it posted operating revenue of IS$21.8 billion, a 12% rise over the previous year driven by volume growth, price gains, and higher fuel surcharge.

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The reported net income for fiscal 2021 was US$6.5 billion or US$9.95 per diluted share compared to US$5.35 billion or US$7.88 per diluted share in FY 2020. 

Its market capitalization is US$170.5 billion. UNP has a P/E ratio of 26.9 and a dividend yield of 1.78%, with an annualized dividend of US$4.72.

The stock was up 1.37% to US$271.335 at 9:53 am ET on Thursday.

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UNP to MANH: Top supply chain stocks to watch amid global concernsSource: Pixabay

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United Parcel Service, Inc. (NYSE: UPS)

Price range in one year: US$233.72 to US$158.70
Closing price on March 23, 2022: US$214.58

United Parcel Service is a parcel delivery company with a fleet of more than 500 planes and 100,000 vehicles. The Atlanta, Georgia based transportation company has hundreds of sorting facilities that deliver around 25 million packages daily.

The company reported revenue of US$97.29 billion in the fiscal year ended December 31, 2021, a 15% increase over the previous year’s revenue of US$84.63 billion. Its net income increased 859.8% to US$12.89 billion in FY 2021 compared to US$1.34 billion in fiscal 2020.

The EPS diluted came in at US$14.68 in FY 2021 versus US$1.54 earnings per share diluted in the fiscal year 2020.  The company expects consolidated revenue of about US$102 billion in fiscal 2022.

Its market capitalization is US$186.9 billion. UPS has a P/E ratio of 14.6 and a dividend yield of 2.78%, with an annualized dividend of US$6.08.

UPS stock traded at US$214.88, up 0.14% at 9:53 am ET on Thursday.

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Manhattan Associates, Inc. (NASDAQ: MANH)

Price range in one year: US$188.52 to US$113.09
Closing price on March 23, 2022: US$140.43

Manhattan Associates provides software-to-manage supply chains, inventory, and omnichannel operations. The Atlanta, Georgia-based company was founded in 1990, and it serves over 1,200 customers globally, including retailers, wholesalers, manufacturers, and logistics providers. 

Its revenue was US$664 million in the fiscal year 2021 compared to US$586 million in the fiscal year 2020. The operating income was US$134.3 million. The net income came in at US$110.5 million in fiscal 2021 compared to US$87.24 million in FY 2020. The EPS diluted was US$1.72 in FY 2021 compared to US$1.36 per share diluted in the previous fiscal.

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The company expects the full year 2022 revenue to be in the range of US$700 million to US$715 million.      

Its market capitalization is US$8.86 billion. MANH has a P/E ratio of 81.65 and a forward P/E for one year of 104.53. 

The stock was down 0.34% at US$139.955 at 9:54 am ET on March 24.

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CSX Corporation (NASDAQ: CSX)

Price range in one year: US$38.63 to US$29.48
Closing price on March 23, 2022: US$36.39

Jacksonville, Florida-based CSX is a railroad company. It has over 21,000 miles of track and hauls coal, chemicals, intermodal containers, automotive cargo, and industrial merchandise.

Its revenue for fiscal 2021 was US$12.5 billion compared to US$10.58 billion in fiscal 2020. The net income was US$3.78 billion or US$1.68 per share diluted versus US$2.77 billion or US$1.20 per share diluted in FY 2020.

Its market capitalization is US$79.8 billion. The stock has a P/E ratio of 21.66 and a dividend yield of 1.09%, with an annualized dividend of US$0.40.

CSX stock was up 0.69% to US$36.64 at 9:54 am ET on Thursday. 

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UNP to MANH: Top supply chain stocks to watch amid global concerns

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XPO Logistics, Inc. (NYSE: XPO)

Price range in one year: US$153.45 to US$59.22
Closing price on March 23, 2022: US$75.27

Greenwich, Connecticut-based XPO Logistics is a diversified trucking and logistics company. Its portfolio includes transportation operations, asset-light freight brokerage, heavy goods last-mile delivery, and European truckload and LTL operations.

For the year ended December 31, 2021, it recorded a net income of US$341 million on revenue of US$12.8 billion. In fiscal 2020, the net income was US$117 million on revenue of US$10.2 billion.

Its market capitalization is US$8.64 billion. XPO has a P/E ratio of 25.43 and a forward P/E ratio for one year of 14.84.

The stock traded at US$75.79, up 0.69% at 9:54 am ET on Thursday.

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Bottomline

The Dow Jones Transportation Average index rose 14.24% in one year but is down around 1.04% YTD. The supply chain crisis is not going away soon, given the continuing Ukraine war. As a result, markets are volatile. Hence, investors must carefully analyze the company fundamentals and the external factors before investing in stocks.

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