UPSwing: Why This Delivery Giant May Be Poised For Takeoff

Summary

  • UPS has historically had poor total return, returning just 5.2% per year since 2004.
  • The company's cyclical behavior and labor-intensive business model have contributed to its underperformance.
  • Despite these challenges, UPS is focusing on efficiency and growth in healthcare logistics and e-commerce returns, positioning it for long-term success.
  • In general, UPS is working on an impressive turnaround, that could bode well for investors for many years to come.
  • Looking for more investing ideas like this one? Get them exclusively at iREIT® on Alpha. Learn More »
United Parcel Service B747

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Introduction

It's time to discuss United Parcel Service (NYSE:UPS), a stock I haven't covered since November 13, 2023.

Back then, I went with the title "Down 40%, 5%-Yielding UPS Is Getting Attractive."

One of the problems I always had with

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This article was written by

42.9K Followers

Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.

As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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