President Trump's tariff actions rattled markets.After months of threatening to levy tariffs on imports from countries he blames for facilitating the flood of fentanyl into the U.S., on Saturday, President Donald Trump did just that. He announced the imposition of new 25% tariffs on imports to the U.S. from its top two trading partners, Mexico and Canada. The country's third biggest trading partner, China, got hit with a 10% increase in its tariffs as well. U.S. stock markets are reacting as you might expec ...

Core Viewpoint - The article discusses the investment strategy focused on dividend growth investing and the importance of identifying undervalued large-cap stocks with sustainable dividend growth and capital appreciation potential [1]. Group 1: Investment Strategy - The investment approach emphasizes long-term dividend growth investing, leveraging the compounding power of dividends [1]. - The focus is on large-cap stocks that are undervalued and have the potential for sustainable dividend growth [1]. - Additionally, there is an interest in tech and small- or mid-cap stocks for their growth potential, regardless of dividend status [1]. Group 2: Performance and Recognition - The individual has been recognized as being in the Top 2.0% out of over 28,000 financial bloggers as of December 2023, according to Tip Ranks [1].

United Parcel Service (UPS) reported better-than-expected fourth-quarter 2024 earnings on Jan. 30. However, revenues fell short of the Zacks Consensus Estimate and the stock tumbled to a multi-year low of $109.62.The sharp decline was due to the decision to reduce business with its largest customer Amazon (AMZN) . To this end, UPS’ management announced that it has reached an agreement in principle with its largest customer to lower AMZN’s volume with UPS by more than 50% by June 2026.The Amazon news was mai ...

Core Viewpoint - UPS reported Q4 results with revenues missing expectations but earnings exceeding estimates, leading to a significant stock drop due to a disappointing outlook [1][5]. Financial Performance - UPS's Q4 revenue was $25.3 billion, a 1.5% year-over-year increase, while adjusted earnings per share (EPS) rose 11% year-over-year to $2.75 [3][4]. - The Supply Chain Solutions segment saw a 9.1% decline in sales, while U.S. Domestic Package sales increased by 2.2% and International sales rose by 6.9% [3]. - The average daily package volume in the U.S. Domestic segment declined by 0.3%, but international volume increased by 8.8% year-over-year [3]. Outlook and Strategic Decisions - UPS plans to reduce its shipping volumes with Amazon by over 50% by the second half of 2026, which is expected to impact future sales negatively [1][4]. - The company anticipates 2025 sales to be around $89 billion, significantly lower than the $95 billion consensus estimate, but aims for an operating margin expansion to 10.8% [4]. Stock Performance - UPS stock has underperformed, with an 11% decline since the beginning of 2024, compared to a 27% increase in the S&P 500 index [2]. - Over the past four years, UPS stock returns have been inconsistent, with a 30% return in 2021, followed by declines of -15% in 2022, -6% in 2023, and -16% in 2024 [5]. Valuation and Investment Perspective - Currently trading at under 15 times trailing earnings, UPS's valuation is below its average P/E ratio of 17 times over the last five years, suggesting potential for growth despite the reduced sales outlook [7]. - The improvement in profitability is expected to support long-term earnings growth, making UPS stock an attractive option for investors seeking robust long-term gains [7].

United Parcel Service Inc UPS reported mixed fourth-quarter results on Thursday.UPS reported consolidated revenue growth of 1.5% year-over-year to $25.301 billion, missing the consensus of $25.419 billion. Adjusted EPS was $2.75, up 11.3% YoY, above the consensus of $2.53."We are making business and operational changes that, along with the foundational changes we've already made, will put us further down the path to becoming a more profitable, agile and differentiated UPS that is growing in the best parts o ...

Market Overview - Major U.S. equities indexes moved higher, with the S&P 500 advancing 0.5%, the Dow up 0.4%, and the Nasdaq ending roughly 0.3% higher, driven by consumer spending despite a slight deceleration in GDP growth [2]. Company Performances - Vistra (VST) shares surged 13.6%, recovering from earlier losses, as optimism about its potential to power AI data centers contributed to a 330% increase over the past year [3]. - IBM (IBM) stock rose 13.0% after exceeding earnings and sales estimates for the fourth quarter, with strong revenue growth in its software business driven by AI demand [4]. - Las Vegas Sands (LVS) shares increased by 11.1% following a quarterly report that showed fourth-quarter sales exceeded estimates, despite softness in its Macao business [5]. - United Parcel Service (UPS) shares fell 14.1% after reporting lower-than-expected fourth-quarter sales and profits, alongside an agreement to cut Amazon delivery volumes by 50% [6]. - ServiceNow (NOW) shares dropped 11.4% after its fourth-quarter earnings release, where subscription revenue growth fell short of guidance [7]. - Comcast (CMCSA) shares decreased by 11.0% due to a wider-than-expected decline in broadband customers, despite beating profit and sales estimates driven by its Peacock streaming service [8].

Core Insights - UPS achieved significant milestones in digital transformation and operational efficiency in 2024, driven by the Digital Access Program (DAP) and RFID tagging technology [1] Digital Access Program (DAP) - DAP generated $3.3 billion in global revenue, reflecting a 17% year-over-year increase, and contributed significantly to UPS's overall growth [2] - Small and medium-sized businesses (SMBs) accounted for 28.9% of UPS's total U.S. volume in Q4 2024, benefiting from discounted shipping rates and seamless integration with eCommerce platforms [2] RFID Technology Implementation - UPS equipped 60,000 U.S. package cars with RFID sensors, reducing the need for manual scans by approximately 12 million per day, enhancing package visibility and tracking accuracy [3] - Retailers integrating RFID tagging into their supply chains have improved visibility and control over stock levels, making UPS's RFID-enabled services a key differentiator in the logistics market [4] Operational Efficiency and Cost Savings - UPS announced the insourcing of its SurePost service, aiming for $1 billion in annualized savings through its "Efficiency Reimagined" initiative [6] - The company is strategically reducing its volume handled for Amazon by 50% by mid-2026, focusing on more profitable market segments [7][8] Financial Performance - Fourth-quarter revenue increased 1.5% to $25.3 billion, while full-year revenue grew slightly to $91.1 billion [9] - The U.S. Domestic segment revenue fell 2.2%, driven by higher revenue per piece and growth in air cargo, while the international segment saw a 6.9% increase [9]

Core Viewpoint - United Parcel Service (UPS) exceeded fourth-quarter earnings expectations but provided a disappointing forecast for 2025, primarily due to a significant reduction in volume from its largest customer, Amazon [1][3]. Financial Performance - UPS reported earnings of $2.75 per share on revenue of $25.3 billion for the fourth quarter, surpassing Wall Street estimates of $2.53 per share on sales of $25.4 billion [2]. - The company anticipates full-year 2025 revenue of $89 billion, which is notably below the consensus estimate of $95 billion [2]. Strategic Changes - UPS is transitioning its SurePost partnership with the Postal Service in-house, aiming to enhance long-term profitability [3][6]. - An agreement has been reached with Amazon to reduce volume by over 50% by the second half of 2026, which is expected to impact growth negatively in the short term [3][4][6]. - The company is reconfiguring its U.S. network and launching multi-year efficiency initiatives projected to save approximately $1 billion through a comprehensive process redesign [6]. Market Context - Amazon represented nearly 12% of UPS' $91.1 billion revenue in 2024, indicating the significance of this customer relationship [4]. - Since the pandemic, UPS shares have lost about half their value, reflecting a lack of near-term catalysts for recovery [5].

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Viewpoint - United Parcel Service (UPS) reported fourth-quarter 2024 earnings of $2.75 per share, exceeding the Zacks Consensus Estimate of $2.52 and reflecting an 11.3% year-over-year improvement. However, the stock declined in pre-market trading due to disappointing revenue guidance for 2025 [1]. Financial Performance - UPS's total revenues for Q4 2024 were $25.3 billion, slightly below the Zacks Consensus Estimate of $25.33 billion, but up 1.5% year over year [3]. - U.S. Domestic Package revenues reached $17.3 billion, a 2.2% year-over-year increase, driven by a 2.4% rise in revenue per piece and growth in air cargo. The segment's operating profit grew 10.8% year over year to $1.75 billion, with an adjusted operating margin of 10.1% [4]. - International Package revenues totaled $4.9 billion, marking a 6.9% year-over-year increase, attributed to an 8.8% rise in average daily volumes. The segment's operating profit increased 18.1% year over year to $1.06 billion, with an adjusted operating margin of 21.6% [5]. - Supply Chain Solutions revenues were $3.06 billion, down 9.1% year over year due to the divestiture of Coyote. The adjusted operating profit fell 7.7% to $284 million, with an adjusted operating margin of 9.3% [6]. 2025 Outlook - For full-year 2025, UPS anticipates revenues of $89 billion, significantly below the Zacks Consensus Estimate of $94.6 billion. The company plans to reduce its exposure to its largest customer by cutting business volume by over 50% by the second half of 2026 [2]. - The adjusted operating margin for 2025 is expected to be 10.8%. Capital expenditures are projected at approximately $3.5 billion, with dividend payments around $5.5 billion and share buybacks worth $1 billion planned for the year. The effective tax rate is expected to be 23.5% [7].