Stock of the Day

October 2, 2023

United Parcel Service (UPS)

$120.42
+$1.40 (+1.2%)
Market Cap: $102.86B

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 current stock price of United Parcel Service, Inc. is $118.97, which may present a buying opportunity for investors looking for value in the transportation sector.
  • United Parcel Service, Inc. recently reported earnings of $2.75 per share, exceeding analysts' expectations of $2.52, indicating strong financial performance and potential for future growth.
  • The company has a solid dividend yield of 5.51%, with a recent increase in its quarterly dividend to $1.64 per share, making it attractive for income-focused investors.
  • Institutional ownership stands at 60.26%, suggesting confidence from large investors in the company's long-term prospects.
  • Analysts have a consensus rating of "Moderate Buy" with a target price of $140.73, indicating potential upside for investors based on current market conditions.

United Parcel Service Bear Case

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

  • Recent price target reductions by analysts, including a drop from $140.00 to $130.00 by Susquehanna, may indicate concerns about the company's future performance.
  • United Parcel Service, Inc. has a relatively high debt-to-equity ratio of 1.16, which could pose risks in a rising interest rate environment, potentially affecting profitability.
  • Despite strong earnings, the company's price-to-earnings (P/E) ratio of 17.60 suggests that the stock may be overvalued compared to its earnings growth potential.
  • Two analysts have issued sell ratings, reflecting skepticism about the company's ability to maintain its current performance amidst market challenges.
  • The stock has experienced volatility, with a one-year high of $158.95 and a low of $109.40, indicating potential risks for investors concerned about price fluctuations.

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