The Weekly Buzzing Stocks by Billy KawasakiUnited Parcel ServicesUPSTOP PICKJan 30, 2025

It pays a 6.5% yield, but he doesn't buy stocks only for the dividend. He wants growth. Prefers FedEx.

Struggling for a long time. Capital intensive. Had to raise wages a lot. Behind the 8 ball compared to, say, AMZN (a more efficient logistics business). Competitive industry. Higher energy prices a problem, as are tariffs. One of those cases where it's fallen a lot, but that doesn't make it a good business.

It could be a value trap and the dividend may be at risk. World trade is contracting so this could affect its business going forward.

You want to buy stocks when they're down. A deal at 10.5x PE with 11% growth. Don't have to jump in right now, but he'd sell puts ~$75.

Bad year, tariff uncertainty, high labour costs, elevated capex, high debt. Market didn't like reduction in business with AMZN, but it's a low-margin business. E-commerce continues to grow, looking to expand in Mexico. Thinks earnings will inflect this year. Loves the dividend of 7%.

Down 33% this year. What worries him is the 7% dividend yield; high dividends tend to be trouble.

Transport stocks in general have been weak. One of the weakest stocks in the sector. Execution problems. He's the last guy to try to pick a bottom. Yield is 7%, without huge coverage. Doesn't expect dividend cut, but doesn't inspire confidence when entire earnings go to pay the dividend. Stay away.

Business isn't good for them (or FedEx). Shares are -20% this year. They seem to be getting their act together, but it's tough to own.

He questions their strategy. Prefers FedEx.

Is -16% the past year, and yields 5%. After reading an article today about UPS, he'd rather buy FedEx.

Leans more domestic. Very profitable, historical 20% ROE. Very good dividend and historically stable, though payout ratio is getting uncomfortably high so be careful. Good growth. Lots of opportunity to enhance efficiencies.

A dividend pick for 2025. Is down a lot from their highs. A contrarian play. It pays around a 5% dividend yield. It trades at a reasonable valuation and offers decent earnings growth in 2025 of 5-7%. Collect the dividend and enjoy a little capital appreciation on top. You won't shoot the lights out, but you can relax with this steady earner.

It's gone down so much and there's more fear heading into the holiday season. You get the 5% dividend yield, but share remain too expensive.

It is OK for a long term play and pays a dividend. Everyone uses it so it is a safe investment but not very exciting. What happens if the U.S. economy slows down.

Guided down in a very competitive space. Down 34% over 3 years. Consumers are slowing down, and this may significantly hurt volumes.