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Think You Need A Good Stock? Look At This Ultrapar Participacoes S.A. (NYSE: UGP) Analysis

Ultrapar Participacoes S.A. (NYSE:UGP) traded at $2.59 at last check on Tuesday, 01/24/23, made an upward move of 1.77% on its previous day’s price.

Looking at the stock we see that its previous close was $2.54 and the beta (5Y monthly) reads 0.99 with the day’s price range being $2.47 – $2.57. The company has a trailing 12-month PE ratio of 12.21. In terms of its 52-week price range, UGP has a high of $3.12 and a low of $2.13. The company’s stock has gained about 4.53% over that past 30 days.

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Ultrapar Participacoes S.A. has a market cap of $2.86 billion. With its Forward Dividend at 0.15 and a yield of 6.02%, the company’s investors could be anxious for the UGP stock to gain ahead of the earnings release. Estimates by analysts give the company expected earnings per share (EPS) of $0.02, with the EPS growth for the year raised at $0.18 for 2022 and $0.24 for next year. These figures represent 28.60% and 33.30% growth in EPS for the two years respectively.

Analysts tracking the company’s growth have also given it a consensus growth in revenue estimated at $7.75 billion, with a low of $7.75 billion and a high of $7.75 billion. The median projection represents growth squeezing down to 70.70% compared to sales growth for the corresponding quarter a year ago. According to analyst consensus estimates figures, the company’s yearly revenue forecast for 2022 is expected to hit $29.27 billion, or 43.90% up from figures reported last year.

There have been no upward and no downward revisions for the stock’s EPS in last 7 days, something that reflects the nature of company’s price movement in short term. On the other hand, looking at the outlook for the UGP stock, short term indicators assign the stock an average of 50% Sell, while medium term indicators assign it an average of 50% Sell. Long term indicators on average place the stock in the category of 25% Buy.

Looking further, we note that the PEG ratio for the UGP stock currently stands at 0.51, and the most recent price level today is 5.96% off its SMA20 and 4.64% from its 50-day simple moving average. The RSI (14) is pointing at 57.63 while the volatility over the past week is 3.22% and jumps to 3.58% over the past one month. The beta value is 1.20, while the average true range (ATR) is currently pointing at 0.10.

Let’s briefly compare Ultrapar Participacoes S.A. (UGP) stock to its peers. We find that today’s price change of 1.77% and 3.29% over the past 12 months for UGP competes that of Petroleo Brasileiro S.A. – Petrobras (PBR), which has seen its stock price fall -0.93% in the latest trading session and is -3.35% over the last one year. Another of its peers Shell plc (SHEL) has dropped -0.85% today, and was 19.20% up over the past year, while Braskem S.A. (BAK) is also up 1.68% yet, while its price remains in the red at -49.38% over the same period. Ultrapar Participacoes S.A. has a P/E ratio of 12.21 compared to Petroleo Brasileiro S.A. – Petrobras’s 2.25 and Shell plc’s 5.06. In contrast to these companies, both the S&P 500 Index and the Dow Jones Industrial are today at -1.45% and -1.08%, respectively, in early deals.

Coming back to Ultrapar Participacoes S.A. (NYSE:UGP), we note that the average 3-month trading volume was 1.49 million, while that of the preceding 10-day period stands at 1.03 million. Current shares outstanding are 1.09 billion.

The insiders hold 26.80% of the company’s shares while institutions hold 3.70%. The data shows that short shares as of Dec 29, 2022, stood at 2.94 million at a short ratio of 1.99. This represents a 0.27% short interest in shares outstanding on Dec 29, 2022. Shares short rose in December from the previous month at 0.89 million. Investors should be excited about this stock as its upside potential is great, with today’s price pushing the stock 4.96% up in year-to-date price movement.

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