UPS has been losing market share to Amazon, but still has a solid competitive position and is exposed to ongoing growth in eCommerce. The overcapacity problem in the small parcel market is expected to improve as eCommerce demand normalizes and structural growth resumes. UPS's strong relationships with businesses and its ability to cater to a wider range of delivery needs may help it maintain market share and profitability.
UPS shares have dropped nearly 17% in the last year and are trailing behind FedEx and the S&P 500 Index. Despite recent weak performance, UPS's valuation has become more attractive. There is potential for earnings growth to reaccelerate in the next few years, making UPS a good long-term investment.
UPS is a business logistics leader that offers a high dividend yield of 4.7%. The global shipping company has raised its dividend for the past 15 straight years.
UPS (UPS) reported earnings 30 days ago. What's next for the stock?
UPS is in recovery mode after a highly challenging 2023. Margins should improve as delivery volumes improve and the company laps cost increases in last year's numbers.