UPS (UPS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
UPS offers a compelling value with a dividend yield of $6.56 per share, protected by a 63% payout ratio from free cash flow. UPS is trading at a PE ratio of 11.24, significantly below the market average, making it an attractive valuation. UPS is improving its business model by reducing reliance on Amazon, focusing on healthcare, SMBs, and reducing fixed costs by 10%.
UPS is currently undervalued, trading below its intrinsic value, making it a "Buy" despite potential short-term declines due to recession risks. Fourth-quarter results showed growth, but full-year 2024 results were disappointing, with a slight revenue increase and declines in operating profit and EPS. UPS's dividend yield is attractive at nearly 7%, but the high payout ratio raises concerns about its sustainability in the long term.
With UPS shares moving south, let's assess if the stock is a buy at current levels.
Zacks.com users have recently been watching UPS (UPS) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
While a bullish engulfing pattern has appeared and there are near term positive signs in the indicators, the long-term technical bottom may not be in. Q4 earnings were mixed while 2025 full-year guidance was a bit softer than desired. Revenue growth is expected to remain at average levels, however. The P/S ratio has plummeted to multiyear lows, suggesting that investors have overreacted to the modestly weakening fundamentals.
In the latest trading session, United Parcel Service (UPS) closed at $97.08, marking a +0.54% move from the previous day.
United Parcel Service aims to enhance delivery options for residential and commercial shippers with its two new ground shipping options.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
CVS Health on Tuesday named United Parcel Service executive Brian Newman as its new chief financial officer, in the first top management change for the health insurer under the leadership of CEO David Joyner.
It's always good to receive dividend payments, and it's particularly nice when markets are volatile, like they are now.
UPS (UPS -2.50%) will release its first-quarter earnings report on April 26, and it looks like there's more potential for negative news than positive news. That said, there's still a case for buying the stock and holding it for the long term, so the dynamics make UPS a "must-watch" stock this month, not least for investors looking to buy in on a dip.