NYSE:UPS

United Parcel Services (UPS)

109.42
-1.24 (1.12%)
as of Jul 6, 2026, 4:06:55 pm Market Open.
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Investor Insights
star iconJul 6, 2026, 12:00 am

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.

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Consensus
Mixed
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Valuation
Fair Value
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BUY

Global player. Likes it. A good dividend player and a good growth company to own here. He would look at UPS and FEDEX and gauge, which is the better valuation. Thinks UPS would be slightly better. If you are positive on global growth this is a good investment.

COMMENT
Very profitable company with a strong franchise. Global distribution network is very hard for competition to replicate. Highly cyclical and depends on the level of shipments, which is dependent on the economy.
WEAK BUY
FedEx (FEX-N) and United Parcel Service (UPS-N) are both viewed as barometers for the general economy. He prefers FedEx of the two. Gross margins and expense ratios indicate they are better run company.
SELL
A reflection of the US economy because they ship the goods. Thinks the recovery has been ahead of itself. If you have made some money he would take some profits.
PARTIAL BUY
Great company and is run very efficiently and stock is not very expensive. Very much tied to the US economy. Unfortunately, there will be more bad news over the next few quarters. Be patient and spread your purchases.
PAST TOP PICK
(A Top Pick July 31/07. Down 14.9%.) Down partly due to fuel prices and a slowing economy. Strong balance sheet.
PAST TOP PICK
(A Top Pick Mar 30/07. Up 3% including dividends.) Great balance sheet and continues to grow its revenues very well. Passing on higher fuel costs to customers. Likes its global platform and the play on global trade. Long-term hold.
PARTIAL BUY
An outstanding franchise. There are only 2 global companies, FedEx (FDX-N) and UPS that dominate the movement of goods. These are companies that you want to continually buy on a regular basis.
DON'T BUY
Has always been overvalued to him. Probably one of the most well run companies that there is. His model price is $65.01, an 8% negative differential.
DON'T BUY
Very high quality and well-run business, but is not participating in the strong market. If looking for transportation, look at Canadian Pacific (CP-T), which benefits from international trade.
TOP PICK
Struggling because about 65% of revenues come from North American local shipping, which is economically sensitive. Trades at around 16 X earnings. Earnings are growing fantastically. Good price. Business is growing very rapidly.
DON'T BUY
Prefers FedEx.
TOP PICK
A play on global trade as well as increased online shopping. Long-term hold.
BUY ON WEAKNESS
Is a little rich right now, but not too bad if you are interested in buying at $72.
DON'T BUY
The biggest problem for them has been energy prices which has been hurting them quite a bit. The ability to raise prices and put on surcharges is somewhat limited because it is a very competitive business. Long term they are the best package business in the air and on the ground.
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