United Parcel Service, Inc. (NYSE:UPS) is one of the stocks Jim Cramer weighed in on. A caller asked about the stock and mentioned that they have held it for three years, and it has declined significantly over the past year despite offering a dividend yield of over 6%. Cramer stated: “I am worried about United Parcel. I’ll tell you why. It’s down 33% for the year. Because when I see a yield of 7.8%, it worries me because there’s not a lot of yields in the S&P that are that high. The highest yielders tend ...

Core Viewpoint - UPS has terminated its plans to acquire Estafeta due to unmet closing conditions, reaffirming its commitment to growth in Mexico and reliable service for customers [1][2]. Group 1: Acquisition Details - The acquisition of Estafeta was announced in July 2024, with expectations to close by the end of the year [2]. - CEO Carol Tomé indicated that the acquisition process was delayed due to regulatory and pre-closing conditions [2]. Group 2: Strategic Importance - The deal was intended to leverage Mexico's increasing role in cross-border trade, particularly as manufacturers shift from China to the U.S. to mitigate geopolitical and tariff risks [3]. - UPS has conducted over 600 supply chain mapping assessments in 2024 to assist customers in evaluating reshoring options [3]. Group 3: Estafeta's Services - Estafeta offers a range of services including truckload, less-than-truckload, freight forwarding, distribution, customs brokerage, and express parcel delivery [4]. - The combination of UPS and Estafeta was expected to enhance service offerings for customers in Mexico, particularly in small package, healthcare logistics, and contract logistics [4].

Group 1 - United Parcel Service (UPS) stock has declined approximately 30% year-to-date, including dividends, while the S&P 500 Index has increased around 12% during the same period [1] - The analysis emphasizes the importance of quantitative methods in identifying undervalued stocks across various industries, suggesting that numerical data often provide a clearer picture of a company's prospects than narrative [1] Group 2 - The author has been investing since 2013 and has gained knowledge from extensive reading of stock market literature, including notable titles such as "100 Baggers," "Financial Shenanigans," and "The Quants" [1]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: High-Yielding Stocks in the Industrials Sector - Karat Packaging Inc. (KRT) has a dividend yield of 7.46%. Analyst Jake Bartlett from Truist Securities maintained a Hold rating and raised the price target from $28 to $31, with an accuracy rate of 68%. Analyst Ryan Merkel from William Blair downgraded the stock from Outperform to Market Perform, with an accuracy rate of 66%. Recent news indicates that Karat Packaging posted better-than-expected quarterly earnings [7] - United Parcel Service, Inc. (UPS) has a dividend yield of 7.70%. Analyst Ken Hoexter from B of A Securities downgraded the stock from Neutral to Underperform, cutting the price target from $91 to $83, with an accuracy rate of 61%. Analyst Ariel Rosa from Citigroup maintained a Buy rating but lowered the price target from $127 to $114, with an accuracy rate of 67%. Recent news includes an expanded agreement between UPS and American Express to support small businesses [7] - Copa Holdings, S.A. (CPA) has a dividend yield of 5.54%. Analyst Savanthi Syth from Raymond James maintained a Strong Buy rating and increased the price target from $147 to $150, with an accuracy rate of 67%. Analyst Stephen Trent from Citigroup maintained a Buy rating with a price target of $159, with an accuracy rate of 64%. Recent news shows that Copa Holdings posted mixed quarterly results [7]

All this beaten-down stock might need is a little good news.United Parcel Service (UPS -1.20%) delivers roughly 22.4 million packages each business day to more than 10 million recipients in over 200 countries and territories. It owns and operates a fleet of 135,000 vehicles and 291 jets (plus another 243 jets chartered or leased). But those statistics don't matter very much to disheartened UPS shareholders. The number that probably resonates more with them is 63%. That's how much the industrial stock has pl ...

Core Concept - A short straddle is an advanced options strategy aimed at profiting from a stock trading within a narrow range, involving the sale of both a call and a put option to collect two premiums upfront, which represents the maximum gain possible [1][2]. Strategy Overview - The strategy starts with a net credit, allowing profit if the stock trades between the lower and upper break-even points [3]. - The strategy is particularly appealing to beginners due to the upfront premiums, but it carries significant risks, especially during major market events [2]. Stock Examples - The Barchart Short Straddle Screener identifies stocks with a market capitalization greater than $40 billion and total call volume exceeding 2,000, highlighting potential trades in popular stocks like UPS, JD, DIS, OXY, UBER, PLTR, and AAPL [4]. UPS Short Straddle Example - For UPS, the trade involves selling the $85 strike call and the $85 strike put with an October 17 expiry, yielding a premium of $559, which is the maximum profit. The maximum loss is theoretically unlimited, with lower and upper break-even prices at $79.41 and $90.59, respectively [7]. DIS Short Straddle Example - For Disney, the trade involves selling the $115 strike call and the $115 strike put, also with an October 17 expiry, generating a premium of $644 as the maximum profit [10].

Company Performance - United Parcel Service (UPS) closed at $85.20, reflecting a +1.4% increase from the previous day, outperforming the S&P 500's loss of 0.13% [1] - Over the past month, UPS shares have declined by 2.88%, while the Transportation sector has decreased by 0.76% and the S&P 500 has increased by 2.71% [1] Upcoming Financial Results - Analysts expect UPS to report earnings of $1.34 per share, representing a year-over-year decline of 23.86% [2] - Revenue is anticipated to be $20.86 billion, indicating a 6.21% decrease from the same quarter last year [2] Annual Forecast - The Zacks Consensus Estimates project earnings of $6.51 per share and revenue of $87.51 billion for the year, reflecting changes of -15.67% and -3.91% respectively compared to the previous year [3] Analyst Estimates and Stock Price Correlation - Recent changes in analyst estimates for UPS are correlated with near-term stock prices, with positive revisions indicating optimism about the business outlook [3][4] Zacks Rank and Performance - UPS currently holds a Zacks Rank of 4 (Sell), with the Zacks Consensus EPS estimate having shifted 0.24% downward over the past month [5] - The Zacks Rank system has shown that 1 stocks have generated an average annual return of +25% since 1988 [5] Valuation Metrics - UPS has a Forward P/E ratio of 12.91, which is in line with the industry average [6] - The company has a PEG ratio of 1.55, matching the industry average, indicating similar expected earnings growth trajectories [7] Industry Ranking - The Transportation - Air Freight and Cargo industry, which includes UPS, ranks in the bottom 7% of all industries according to the Zacks Industry Rank [7]

Core Insights - FedEx is set to report its fiscal first quarter results on September 18, providing updated insights into the delivery services market, which has faced increased pressure from tariffs affecting shipping operations and demand [1][4] - The termination of the de minimis trade exemption at the end of August has led to pronounced weakness in cross-border shipping, and Wall Street is looking for FedEx's perspective on the impact of this change [2][4] Financial Performance - FedEx's Q1 sales are estimated to increase by 1% to $21.78 billion compared to $21.58 billion in the same quarter last year, while Q1 EPS is expected to rise by 1% to $3.65 per share from $3.60 [5] - However, the most accurate estimate suggests FedEx could miss earnings expectations, with the Q1 EPS pegged at $3.47, which is 5% below the Zacks Consensus [5][6] Market Outlook - FedEx's total sales are projected to increase by 1% in fiscal year 2026 and by another 4% in fiscal year 2027, reaching $92.91 billion, with annual earnings expected to rise by 1% in FY26 and spike by 13% in FY27 to $20.73 per share [9] - EPS estimates for FY26 and FY27 have trended lower over the last 30 days, indicating potential challenges ahead [9] Stock Performance - FedEx shares have underperformed, down 7% over the last five years, compared to broader indexes that have returned over 100% [3] - Both FedEx and UPS trade at around 12X forward earnings, which is a steep discount compared to the S&P 500's 25.5X [11] - FedEx's stock has rebounded from a one-year low of $194, but short-term risks may still exist [14]

Group 1 - United Parcel Service, Inc. (NYSE:UPS) has been downgraded from Hold to Sell by Bank of America Securities, with a price target reduction from $91 to $83 [1][2] - The downgrade is attributed to increased pressure on UPS's volume and costs due to the end of US de minimis exemptions, which is expected to impact air shipment volumes during the 2025 peak season [2] - The International Priority and Economy packages constitute 16% of UPS's revenue, and the removal of the de minimis exemption is anticipated to negatively affect the company's earnings [2] Group 2 - The analyst has revised the earnings per share (EPS) estimates for UPS, cutting Q3, 2025, and 2026 EPS estimates by 6%, 3%, and 4% respectively [2] - While UPS is recognized for its logistics and package delivery services across more than 200 countries, certain AI stocks are suggested to offer greater upside potential with less downside risk [3]

Insider Buying Trends - Insider buying has been below normal in 13 of the past 15 months, with August showing only 26% of purchases compared to sales [3] - Historically, the highest ratio of buys to sells was 2.01 in October 2008 during the Great Recession, indicating that insider buying can signal future recovery [4] Eastman Chemical - Eastman Chemical Co. (EMN) executives, including CEO Mark Costa and CFO McLain William Thomas Jr., made significant purchases of shares on August 27, totaling approximately $502,000 and $252,000 respectively [5] - The stock has fallen 24% this year, impacted by high tariffs on imported materials, yet it has shown profitability for over 30 years [6] - Current valuation is attractive, trading at about nine times earnings and less than one times revenue, suggesting potential for recovery [6] Eli Lilly - Eight executives at Eli Lilly (LLY) bought shares in August, including CEO David Ricks and CFO Lucas Montarce, who spent over $1 million and nearly $495,000 respectively [7] - The stock price has decreased from a high of $942 to around $755, but it trades at a high valuation of 49 times recent earnings and over 12 times revenue, indicating it may be overvalued [8] United Parcel Service - United Parcel Service Inc. (UPS) shares have dropped more than 31% this year, with CEO Carol Tome purchasing over $1 million in August [9] - Despite competitive pressures, UPS maintains a strong return on equity of over 34% and trades for less than 13 times earnings, suggesting potential for future gains [10] First Citizens BancShares - At First Citizens BancShares Inc. (FCNCA), CEO Frank Holding Jr. invested over $1 million in August, alongside four other insiders [11] - The bank has shown improving profits and has consistently achieved a return on assets of 1.0% or better, with the stock trading at a reasonable valuation of 12 times recent earnings [12] Performance of Insider Buying Stocks - Stocks recommended based on insider buying have returned an average of 8.9% over 12 months, underperforming the S&P 500 Total Return Index by 1.8 percentage points [13] - Stocks to avoid despite insider buying have lagged the index by 24 percentage points, while those with ambiguous comments on insider buying have outperformed the index by 14.2 percentage points [14]