UPS: Cut The Costs

MacroGirl
1.53K Followers
(7min)

Summary

  • UPS is trading near Covid lows after a 34% YTD decline.
  • Long-term headwinds include high costs and declining margins, but management is targeting $1B in savings through efficiency initiatives.
  • Revenues are not growing but are stable. There is a risk from the trade war, but as long as the dividend is not cut, the risk/reward ratio is attractive.
UPS Delivery

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One of the most effective tactics I use is to buy strong stocks in strong sectors. They may have high valuations, but that is usually for a good reason. Occasionally, I employ different tactics when good companies are on sale and the stock is

This article was written by

1.53K Followers
My approach is long-term and I focus on investing in macro ideas through low risk ETFs and CEFs. I have traded stocks and currencies for nearly ten years and currently run a family fund with my partner and fellow SA contributor Andrew McElroy. I also invest in real estate and am a freelance writer and contributor to Matrixtrade.

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.

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