In this article, I will be covering United Parcel Service (UPS), which is my selection for a beaten down dividend growth stock worth considering. In my previous article about Comcast (CMCSA), I noted that shares were down just over 21% since highs were made on January 24th. Shares of UPS made a closing high on January 13th and have since fallen almost 21%. There are three reasons why I believe UPS is a better selection than Comcast for a beaten down dividend growth selection: More Upside, growing market, higher dividend yield.

UPS Value

For an apples to apples comparison, I used the same method to value shares of UPS as I did for Comcast in my previous article. I looked at pre-tax earnings multiples since 2017 was impacted by tax changes in Q4, which skewed net income. I compared the current multiple to the multiple that UPS had, using the price on April 10th (or closest trading day) in previous years. As you can see, the average multiple for the previous 4 years was 15.77x pre-tax EPS. Currently, shares are trading at a discount to that multiple, and when I applied the average multiple to the current pre-tax EPS, I arrived at a target price of $130.89, which is 23.46% above the current price. On the other hand, Comcast had upside of 15.92%, which shows that UPS has more upside potential.

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