Stock of the Day

October 2, 2023

United Parcel Service (UPS)

$116.35
-$0.25 (-0.2%)
Market Cap: $99.60B

About United Parcel Service

United Parcel Service, Inc., a package delivery company, provides transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery of express letters, documents, small packages, and palletized freight through air and ground services in the United States. The International Package segment provides guaranteed day and time-definite international shipping services comprising guaranteed time-definite express options in Europe, Asia, the Indian sub-continent, the Middle East, Africa, Canada, and Latin America. The company also offers international air and ocean freight forwarding, post-sales, and mail and consulting services. In addition, it provides truckload and customs brokerage services; supply chain solutions to the healthcare and life sciences industries; fulfillment and transportation management services; and integrated supply chain and shipment insurance solutions. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.

United Parcel Service Bull Case

Here are some ways that investors could benefit from investing in United Parcel Service, Inc.:

  • The company recently increased its quarterly dividend to $1.64, up from $1.63, indicating strong financial health and a commitment to returning value to shareholders. This represents an annualized dividend of $6.56, providing a yield of 5.64%.
  • United Parcel Service, Inc. has a solid market capitalization of $99.31 billion, reflecting its significant presence in the transportation and logistics sector, which can be a sign of stability and growth potential.
  • As of the latest trading session, shares of United Parcel Service, Inc. are priced at $116.37, which may present a buying opportunity for investors looking for value in the current market.
  • Institutional investors own 60.26% of the stock, suggesting confidence from large financial entities in the company's future performance.
  • The company has shown resilience with a price-to-earnings ratio of 17.21, which is relatively attractive compared to industry averages, indicating that the stock may be undervalued.

United Parcel Service Bear Case

Investors should be bearish about investing in United Parcel Service, Inc. for these reasons:

  • Insider selling activity has been noted, with insider Norman M. Brothers, Jr. selling 7,325 shares, which could raise concerns about the company's future prospects from those who are closely involved.
  • The company's debt-to-equity ratio stands at 1.16, indicating that it has a relatively high level of debt compared to equity, which could pose risks in times of economic downturns.
  • Despite the recent dividend increase, the payout ratio is currently at 96.45%, suggesting that a significant portion of earnings is being distributed to shareholders, which may limit reinvestment in the business.
  • Recent trading volumes have been lower than average, with 5,937,801 shares traded compared to an average of 7,571,378, which may indicate reduced investor interest or confidence.
  • The company's fifty-day moving average price is $124.53, which is above the current stock price, potentially signaling a downward trend and raising concerns about short-term performance.

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