Stock of the Day

October 2, 2023

United Parcel Service (UPS)

$104.24
-$1.30 (-1.2%)
Market Cap: $88.18B

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 is around $104, which may present a buying opportunity for investors looking for value.
  • United Parcel Service, Inc. has recently reported earnings that exceeded analysts' expectations, indicating strong operational performance.
  • The company has a solid dividend yield of approximately 6.29%, which can provide a steady income stream for investors.
  • With a market capitalization of $88.27 billion, United Parcel Service, Inc. is a well-established player in the logistics and delivery sector, offering stability.
  • Analysts have a consensus rating of "Hold" on the stock, suggesting that it may be a stable investment in the current market environment.

United Parcel Service Bear Case

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

  • The stock has experienced a decline of about 1.2% recently, which may indicate short-term volatility.
  • United Parcel Service, Inc. has a relatively high debt-to-equity ratio of 1.24, suggesting that the company relies significantly on debt financing, which can be risky.
  • Quarterly revenue was down 0.9% compared to the same quarter last year, indicating potential challenges in maintaining growth.
  • The company's dividend payout ratio is high at 95.63%, which may raise concerns about sustainability if earnings do not improve.
  • With a P/E ratio of 15.20, the stock may be considered overvalued compared to its earnings, which could deter some investors.

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