United Parcel Service, Inc.

United Parcel Service, Inc.

United Parcel Service, Inc. (UPS) is a global package delivery and supplyโ€‘chain management company with a broad logistics network spanning parcel delivery, freight, and contract logistics. Investors should note UPS benefits from eโ€‘commerce growth and scale advantages that support stable cash flow and dividends, but it is exposed to cyclical volume swings, fuel price volatility, labour costs, and competition from carriers and integrators. The company invests heavily in sorting and fleet automation, alternative fuels and technology to improve efficiency and capacity, which can support margins over time but requires significant capital expenditure. UPSโ€™s size and market share provide resilience, though geopolitical trade shifts or an economic slowdown can reduce volumes and revenue. Market cap is around $74.64 billion. This summary is educational only and not personalised financial advice; investments carry risk and past performance does not guarantee future returns. Consider your own objectives and, if needed, consult a regulated adviser.

Why It's Moving

United Parcel Service, Inc.

UPS Bucks Market Dip with Solid Gains Amid Valuation Appeal

United Parcel Service shares climbed 1.49% to $96.97, outperforming a slipping broader market including a 0.09% S&P 500 drop and 0.38% Dow decline. This resilience highlights investor interest in UPS's discounted valuation and steady monthly uptrend despite sector headwinds.

Sentiment:
๐ŸƒBullish
  • Outpaced benchmarks as S&P 500 fell 0.09% and Dow dropped 0.38%, with UPS up 1.49% in the session.
  • Rallied 2.68% over the past month, trailing transportation sector's 5.11% gain but beating S&P 500's 1.89%.
  • Trades at attractive Forward P/E of 13.87 versus industry 15.37, signaling potential undervaluation.

Stock Performance Snapshot

Buy

Analyst Rating

Analysts recommend buying UPS stock with a target price of $103.42, indicating potential growth.

Above Average

Financial Health

UPS shows strong revenue and cash flow, with healthy profit margins indicating solid financial management.

High

Dividend

UPS offers a strong dividend yield of 6.49%, making it appealing for dividend-seeking investors. If you invested $1000 you would be paid $65.50 a year in dividends (based on the last 12 months).

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

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Why Youโ€™ll Want to Watch This Stock

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Eโ€‘commerce Tailwinds

Online shopping growth has expanded parcel volumes and revenue potential for UPS, though volumes can be cyclical and depend on consumer spending.

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Network Investment Focus

UPSโ€™s automation, fleet modernisation and alternativeโ€‘fuel programmes aim to boost efficiency and capacity, but require substantial capital and execution.

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Global Competitive Forces

International trade exposure and strong competitors shape pricing and margins; regulatory and labour developments can materially affect results.

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Frequently asked questions