United Parcel Service is rated 'sell' due to thin dividend coverage and rising input cost risks. UPS faces a high-debt, low-margin environment with FCF barely covering the $5.4B dividend, leaving little margin for error. Cost inflation—especially salaries and diesel—alongside upcoming debt refinancing at higher rates, threatens profitability and dividend sustainability.
UPS (UPS) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
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UPS (NYSE: UPS) is delivering double-digit non-GAAP EPS growth and expanding margins, despite elevated fuel costs and market pressure. UPS's AI-driven network optimization and strategic pivot to higher-margin segments like healthcare underpin its robust operating performance. The company guides to $91B+ FY revenue and $8.6B adjusted operating profit, supporting a sustainable 7%+ dividend yield with strong FCF coverage.
In the latest trading session, United Parcel Service (UPS) closed at $95.78, marking a +1.04% move from the previous day.
UPS plans to hire over 100,000 seasonal workers for the holiday rush, but weak volumes, rising fuel costs and dividend concerns cloud its near-term outlook.
United Parcel Service (UPS) reached $94.13 at the closing of the latest trading day, reflecting a +1.99% change compared to its last close.
UPS yields 7% and the dividend has held steady for seven straight payments, but one look at where the cash is actually coming from turns that income story into something far more uncomfortable.
United Parcel Service Inc (NYSE:UPS) earnings forecasts have been trimmed by UBS, but the broker kept its Buy rating and $124 price target, pointing to improving domestic margins as the key driver of the delivery company's earnings outlook. The broker lowered third-quarter earnings per share to $1.63 from $1.67, matching consensus, and fourth-quarter earnings to $2.70 from $2.72, below consensus of $2.73.
UPS (UPS) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
United Parcel's Secure Commerce combines insurance, fraud mitigation and AI-driven risk management to protect shipments, revenues and customer relationships.
UPS on Tuesday said it had inked an exclusive deal to provide no-box, no-label returns for the fast-growing TikTok Shop network of US sellers as it competes with rivals like FedEx to provide specialized services that generate more profit than typical e-commerce package deliveries.