
NYSE:UPS
This summary was created by AI, based on 7 opinions in the last 12 months.
United Parcel Service (UPS) is currently undergoing a turnaround, emphasizing automation and maintaining a rich dividend yield of approximately 6-7%. While some experts see it as a contrarian play with a quality franchise and potential for earnings growth, others highlight ongoing struggles, particularly due to high capital intensity, competition from Amazon, and rising costs related to wages and energy. The reviews are mixed; some analysts express concern over the risk of value traps and dividend sustainability, especially given the challenges in the logistics sector. The stock has experienced significant declines this year, leading to thoughts surrounding its attractiveness as a bargain in a competitive landscape.
UPS vs. FDX If you believe we're headed into a new economic cycle, transportation is a great place to be. UPS and FDX are the most obvious beneficiaries of the move to online shopping and logistics. Can certainly pull back. Both good, but he prefers UPS, as business model is more unified. Strong operating base. Fedex was cobbled together, operational issues.
Hold? Stick with it. Don't worry about its history. The CEO is smart and solid. Also likes FedEx.
A Covid vaccine distribution play They have a freezer farm in the U.S. and Holland, cold enough to transport the Pfzier vaccine. That's a definite plus. They recently reported a strong quarter, but didn't issue guidance, so the stock got hammered. The stock has since recovered. The coming holiday season is crucial for UPS. He believes in the new CEO to deliver this season and in delivering vaccines.
E-commerce is on fire and the CEO used to run Home Depot. It reports Wednesday. He has faith in the new CEO.
Whole sector has had a resurgence because of e-commerce. His first choice is FedEx because of international priority freight. A timely area.
He likes the UPS name. There are really only two big players in the space, them and FedEx. He prefers FedEx and owns that one. The problem is that there is a growing need for capital to move towards same-day delivery. He thinks FedEx did a smart thing pushing back on Amazon pricing terms and they have reduced their exposure to them to only 1% of revenues.