The package delivery giant has laid out its medium-term goals. If it hits them, the stock at current prices will have been a great value opportunity.UPS (UPS 0.03%) management set out its targets for 2026 during its investor day event in March, and they will serve as a guidepost for investors. The question is not whether UPS will be a good value at current prices if it hits those goals, but whether it will achieve its aims. Here's what you need to know about the company's plans for the next three years.UPS ...

The sell-off in UPS has gone too far.United Parcel Service (UPS 0.06%) stock gained an impressive 83% between 2020 and the end of 2021 -- benefiting from a shift away from services and in-store shopping toward home delivery. But since the beginning of 2022, UPS is down over 35% compared to a 12% gain in the S&P 500.Here's why the high-yield dividend stock deserved to sell off but is worth buying now. A major slowdownOne look at a chart of UPS' stock price, sales, and operating margin, and it's easy to see w ...

The delivery giant's dividend looks sustainable, but there is little room for significant improvement in the coming years.Investors attracted to UPS (UPS 1.43%) stock are, no doubt, drawn at least in part by its generous 4.7% dividend yield. But how sustainable is that payout, and what are the prospects that the company will continue its 15-year run of raising its dividend per share next year? Here's the lowdown.UPS' dividend payoutUsually, when investors discuss a payout ratio, they compare dividends per s ...

The package delivery giant isn't firing on all cylinders right now, but its stock does offer a compelling dividend.United Parcel Service (UPS -2.02%) stock currently offers a compelling 4.7% dividend yield. Based on that yield, an investment of $21,276 in the stock would buy almost 157 shares that would generate roughly $1,000 in annual income in 2024. That's a pretty decent return all by itself.There's also potential for UPS' stock to appreciate if this multinational shipping & receiving and supply chain m ...

ricochet64/iStock Editorial via Getty Images Shares of UPS (NYSE:UPS) have been performing poorly since the burst of the post-COVID eCommerce bubble, and the firm has been losing market share to Amazon (AMZN) at an accelerating pace in recent times. These situations might be difficult to time, but UPS still has a solid competitive position and is exposed to ongoing tailwinds of growth in eCommerce, which appears to have mostly normalized following the last few years of volatility. I share why I think th ...

Core Viewpoint - United Parcel Service, Inc. (UPS) has experienced a significant decline in share price, down nearly 17% over the past year, underperforming compared to its rival FedEx and the S&P 500 Index, which has seen a total return of over 26% during the same period. However, the stock's valuation has become more attractive, and there is potential for earnings growth to reaccelerate in the coming years, making it a potential long-term investment opportunity [2]. Recent Performance - UPS's earnings-per-share (EPS) grew 9.3% from 2019 to 2020 and surged over 47% in 2021, but faced a 32% decrease in EPS in 2023 due to reduced demand and higher costs [3]. - In the first quarter of 2024, UPS reported a revenue decline of 5.2% to $21.7 billion, missing estimates by $240 million. Adjusted EPS was $1.43, down from $2.20 the previous year, although it exceeded expectations by $0.08. All business segments showed year-over-year declines, with U.S. Domestic revenue down 5% and International revenue down 6.3% [3][4]. Positive Developments - Despite the mixed results, the rate of revenue decline has slowed for three consecutive quarters, indicating a potential stabilization. Each segment's decline rate has also improved, with U.S. Domestic daily volume decreasing by 7.4% in Q4 2023 compared to larger declines in previous quarters [4]. - UPS's price-per-piece remained stable in the U.S. Domestic business, and while union wage costs increased by 13%, the company managed to reduce other costs, leading to a 0.8% decline in adjusted operating expenses [4]. Future Outlook - UPS projects a revenue decrease of 7% for 2024 but anticipates positive sales and volume growth in the second half of the year, which would be a significant turnaround after experiencing mid-single- to low double-digit decreases over the past five quarters [5]. - Analysts have mixed reactions to UPS's quarterly report, with more downward revisions for 2024 revenue and EPS estimates. However, future projections indicate expected growth in EPS by at least mid-teens percentages over the next two years, aided by a new agreement with the United States Postal Service [6][7]. Valuation and Dividend - UPS's stock closed at approximately $139, implying a forward price-to-earnings ratio of just under 17, aligning with its historical average. The company is expected to see volume growth return in the latter half of the year, and analysts project a valuation range of 16 to 18 times earnings, with potential returns of 3% to 16% in 2025 [9]. - The dividend yield stands at 4.7%, one of the highest in over a decade, providing a strong incentive for investors while the company aims for growth. The projected payout ratio for 2024 is 80%, which is high but expected to stabilize with anticipated growth [9].

It has been about a month since the last earnings report for United Parcel Service (UPS) . Shares have lost about 1.9% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is UPS due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Earnings Beat at UPS in Q1United Parcel Ser ...

The company's dividend looks sustainable, provided management hits its medium-term targets.UPS' (UPS -0.28%) current forward dividend yield of around 4.4% is highly attractive for income-seeking investors, but is the payout sustainable? The company's earnings have disappointed recently, and the dividend cover looks pretty thin in 2024. Is UPS a stock for dividend hunters to buy? Here's what you need to know before buying the stock.UPS' dividendThe company's trailing-12-month dividend cost it about $5.4 bill ...

United Parcel Service (UPS) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Over the past month, shares of this package delivery service have returned +0.4%, compared to the Zacks S&P 500 composite's -0.3% change. During this period, the Zacks Transportation - Air Freight and Cargo industry, which UPS falls in, has lost 3.1%. The key question now is: What could be ...

Financial Performance - Revenue for Q1 2024 was $21,706 million, a decrease of 5.3% from $22,925 million in Q1 2023[189] - Operating profit fell to $1,613 million, down 36.5% from $2,541 million in the same quarter last year[189] - Net income decreased to $1,113 million, representing a 41.3% decline compared to $1,895 million in Q1 2023[189] - Total revenue declined by 5.0% to $14,234 million from $14,987 million year-over-year[211] - Operating profit decreased by 43.7% to $825 million, with operating margin dropping to 5.8% from 9.8%[211][223] - Total operating profit decreased by $115 million, with operating margin decreasing 320 basis points to 4.1%[248] Volume and Revenue Trends - Average daily package volume decreased by 3.6% to 21,199 thousand packages, down from 21,989 thousand packages in Q1 2023[189] - Average daily package volume decreased by 3.2% to 18,075 thousand packages compared to 18,672 thousand packages in the same period last year[211] - Business-to-consumer volume declined by 1.5%, while business-to-business volume decreased by 5.5% due to challenging macroeconomic conditions[215] - International package average daily volume decreased by 5.8% to 3,124 thousand packages, with domestic volume down by 8.1%[226] - Domestic volume declined in the quarter, with the largest declines in Germany, Canada, and the United Kingdom due to challenging economic conditions[231] Cost and Expenses - Operating expenses decreased by 1.4% to $20,093 million, down from $20,384 million in Q1 2023[189] - Total operating expenses decreased by $291 million, or 1.4%, to $20,093 million compared to the previous year[250] - Adjusted total operating expenses decreased by $414 million, or 2.0%, to $19,959 million[250] - Compensation and benefits increased by $175 million, or 1.5%, primarily due to direct labor costs rising by $199 million[250] - Total cost per piece increased by 4.2%, driven by higher pickup and delivery costs and increased compensation expenses[222] Strategic Initiatives - The company opened a new facility at its global air hub for complex healthcare shipments, enhancing its healthcare strategy[184] - UPS entered into an agreement with the U.S. Postal Service to become its primary air cargo provider, expected to impact air network expenses starting Q2 2024[184][203] - The acquisition of MNX Global Logistics in Q4 2023 contributed to increased revenue in logistics, despite overall declines in freight forwarding[185] Cash Flow and Capital Expenditures - Net cash from operating activities increased to $3,316 million, up from $2,357 million in the previous year[275] - Total capital expenditures for the quarter were $1.035 billion, representing 4.8% of revenue, an increase from 2.7% in the same quarter of the previous year[278] - Cash proceeds from the sale of marketable securities amounted to $2.6 billion, providing additional resources for short-term and strategic operating needs[279] - Net cash used in financing activities was $(3.666) billion, with no share repurchases in the first quarter of 2024 compared to $750 million for 4.1 million shares repurchased in the same quarter of 2023[284] Debt and Financial Position - Total debt outstanding at the end of the quarter was $20.013 billion, down from $22.188 billion in the previous year[284] - The company had $4.5 billion in cash, cash equivalents, and marketable securities as of March 31, 2024[274] - The company anticipates capital expenditures of approximately $4.5 billion in 2024, with about 50% allocated to network enhancement projects and technology initiatives[278] Tax and Investment Income - Income tax expense decreased by $204 million, or 32.5%, to $423 million[271] - Investment income decreased by $51 million, or 30.2%, primarily due to a reduction in invested balances[265] Risk Management and Controls - The company does not engage in speculative trading activities, managing market risks through various financial instruments[297] - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended March 31, 2024[304] - The effectiveness of disclosure controls and procedures was confirmed by the Principal Executive Officer and Principal Financial and Accounting Officer as of the end of the reporting period[303]