It appears a deal between United Parcel Service (UPS -2.75%) and the U.S. Postal Service was not renewed for 2025, and investors are trying to make sense of what that would mean for the transportation company. Details remain scarce and investors loathe uncertainty, helping to push UPS shares down about 3% as of 2pm Eastern on Friday.
United Parcel Service, Inc. UPS shares are trading lower on Thursday.
Shares of package delivery giant UPS (UPS 1.42%) fell by 19.8% in 2024, according to data provided by S&P Global Market Intelligence. It was a challenging year for the company operationally, and its adjusted operating profit is set to come in significantly lower for the year than originally expected.
UPS is strengthening its healthcare logistics capabilities across Europe through the acquisitions of Frigo-Trans and BPL.
The latest trading day saw United Parcel Service (UPS) settling at $124.98, representing a +0.62% change from its previous close.
In the closing of the recent trading day, United Parcel Service (UPS) stood at $124.21, denoting a +0.34% change from the preceding trading day.
United Parcel Service's (UPS -0.20%) stock closed at an all-time high of $206.37 per share on Feb. 2, 2022. At the time, many investors were impressed by its stable growth, wide moat, and rising shipments for e-commerce platforms.
If your holiday gifts made it under the Christmas tree just in time, there's a good chance at least one was delivered by United Parcel Service (UPS 0.08%). As the world's largest package delivery company, UPS handled an average of 22.3 million packages and documents per day in 2023.
UPS is poised for revenue growth due to U.S. industrial market recovery, SMB and healthcare focus, and improved service offerings. Margins are expected to improve with cost reductions, automation, and operating leverage as volumes recover. The stock is undervalued, trading at a discount to historical levels, with a healthy dividend yield of 5.16%.
UPS, a global leader in small-parcel delivery, leverages scale and network advantages for higher margins and efficiency, presenting a unique value investment opportunity. Recent automation and consolidation initiatives have boosted productivity, with Q3 results showing revenue and profit growth, despite negative investor sentiment due to inflation and tariff concerns. UPS's acquisition of Estafeta and investments in healthcare logistics strengthen its competitive moat, with significant future revenue and profit growth potential.
United Parcel Service (UPS) concluded the recent trading session at $125.75, signifying a +0.06% move from its prior day's close.
Currently yielding 5.1%, purchased shares of UPS (UPS 2.47%) would generate $6,550 in annual income if you invested $100k across both stocks. While there are question markets around the business and its full-year guidance, the stock still represents an excellent value for long-term investors.