Stock of the Day

October 2, 2023

United Parcel Service (UPS)

$100.11
-$10.09 (-9.2%)
Market Cap: $85.51B

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 stock is currently trading at $109.66, which may present a buying opportunity for investors looking for value in a well-established company.
  • United Parcel Service, Inc. has a strong dividend yield of 5.98%, providing a steady income stream for investors through its quarterly dividend payments.
  • The company reported earnings per share of $2.75, exceeding analyst expectations, indicating strong financial performance and potential for future growth.
  • Analysts have a consensus rating of "Moderate Buy" with an average target price of $137.57, suggesting that there is potential for price appreciation in the stock.
  • United Parcel Service, Inc. has a robust market capitalization of $93.66 billion, reflecting its stability and significant presence in the logistics and transportation sector.

United Parcel Service Bear Case

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

  • Recent analyst ratings show a mix of opinions, with two analysts issuing sell ratings, which may indicate concerns about the company's future performance.
  • The stock has experienced a decline of 1.2% recently, which could signal potential volatility and risk for investors.
  • With a debt-to-equity ratio of 1.16, the company has a relatively high level of debt compared to its equity, which could pose risks in times of economic downturn.
  • Some analysts have lowered their price targets for the stock, indicating a lack of confidence in its short-term growth prospects.
  • The company's dividend payout ratio is 97.04%, suggesting that it is returning nearly all of its earnings to shareholders, which may limit reinvestment in growth opportunities.

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