Core Insights - American Express and UPS are collaborating to provide offers specifically designed to support small and medium-sized businesses (SMBs) during the critical holiday shopping season [1][5] Group 1: Partnership Overview - The partnership aims to leverage the expertise of both companies to create a robust ecosystem for SMBs, enhancing their operational capabilities [2] - UPS is investing in services that are crucial for SMBs, including flexible returns and integration with their logistics network, to help these businesses thrive [3] Group 2: Benefits for SMBs - The collaboration includes exclusive savings on UPS shipping options through American Express' Business Savings Suite, allowing SMBs to save more as their shipping volume increases [3] - American Express Small Business Card members will have access to additional offers and benefits, with more to be introduced in the coming months [5] Group 3: Market Context - SMBs are currently dissatisfied with existing credit card offerings, which they feel do not cater to their specific industry needs, indicating a gap in financial services [6] - Research highlights that SMBs are willing to spend more if credit cards provided features tailored to their unique requirements, suggesting a significant opportunity for customized financial products [7]

Core Insights - United Parcel Service (UPS) and J.B. Hunt Transport Services (JBHT) have both announced dividend increases this year, demonstrating a commitment to shareholder returns despite economic uncertainties [1][3][10] - JBHT has shown better price performance compared to UPS, driven by intermodal growth and sustainability initiatives [8][10][19] Dividend Analysis - UPS raised its quarterly cash dividend to $1.64 per share ($6.56 annualized) from $1.63 ($6.52 annualized) [3] - J.B. Hunt increased its quarterly cash dividend by 2.3% to 44 cents per share ($1.76 annualized) from 43 cents ($1.72 annualized) [3] - Concerns about the sustainability of UPS's dividends arise due to its high payout ratio and declining free cash flow [4][6] Financial Performance - UPS's free cash flow has decreased from a peak of $9 billion in 2022, with only $742 million generated in the first half of 2025 against $2.7 billion paid in dividends [5][6] - JBHT's lower dividend payout ratio indicates a stronger ability to maintain dividend payments over the long term [6][18] Market Comparison - JBHT's intermodal volume grew by 6% in the second quarter of 2025, supported by strong performance in its eastern network [12] - UPS's revenue weakness is attributed to geopolitical uncertainty and high inflation, leading to a decline in package shipping volumes [11] Earnings Estimates - Zacks Consensus Estimate for JBHT indicates a 0.3% decrease in 2025 sales, but a 5.8% increase in 2026 [13] - For UPS, the 2025 sales estimate suggests a 3.9% decrease, with a 15.4% decrease in EPS for the same year [16] Valuation Metrics - JBHT is trading at a forward sales multiple of 1.09X, while UPS has a multiple of 0.81X, indicating that JBHT is perceived as more expensive [18] - JBHT has a Value Score of B, whereas UPS has a Value Score of A [18] Conclusion - JBHT's better price performance, environmental initiatives, and strong intermodal volumes position it as a more favorable investment compared to UPS, which currently has a Zacks Rank of 4 (Sell) versus JBHT's 3 (Hold) [19]

The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. United Parcel Service presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.10 Oversold Dividend Stocks »But maki ...

I've been covering United Parcel Service, Inc. ( UPS ) for almost a year, and in that time, it's tumbled and tumbled and tumbled, now down over 30% from when I issued my first HoldAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in UPS over the next 72 hours. I wrote this article myself, and it expresses my own op ...

The U.S. is reportedly proposing a plan for Samsung Electronics Co. and SK Hynix to seek yearly approvals to export U.S. chip-making gear to China, allowing the South Korean tech giants to keep produc... ...

Group 1 - FedEx Corporation has been underperforming the market for an extended period [1] - United Parcel Service, Inc. is experiencing similar underperformance in the parcel delivery sector [1] Group 2 - The analysis is conducted by a team with backgrounds in business and finance from top universities [1] - The team specializes in macroeconomics, commodities, currencies, and the U.S. stock market [1]

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Core Viewpoint - The upcoming third-quarter earnings report for United Parcel Service (UPS) is expected to be disappointing, with potential implications for the company's dividend policy and stock performance [1][2]. Financial Performance - UPS is projected to report its third-quarter earnings on October 18, with management likely to provide limited positive insights [1]. - The company is currently trading at a 7.6% dividend yield, indicating market skepticism regarding the sustainability of its dividend [2]. - CEO Carol Tome emphasized the strength of UPS and its dividend, which is supported by solid free cash flow and a strong investment-grade balance sheet [3]. - The total cost of dividends is projected to be $5.5 billion in 2025, while $1 billion was spent on share buybacks in the first half of the year [3]. - However, the combined $6.5 billion in dividends and share buybacks is not currently covered by the company's free cash flow [4]. Market Conditions - UPS has not updated its full-year guidance due to significant uncertainty in the market [6]. - The volume from small and medium-sized business (SMB) customers, a key target market for UPS, was lower than anticipated in the second quarter [6]. - Many SMB customers are struggling to cope with rising tariff costs, which may impact their business with UPS [6]. Future Outlook - The upcoming earnings release is likely to create significant volatility in UPS's stock price [8]. - A potential dividend cut could make UPS an attractive buying opportunity if the earnings report disappoints [8]. - Conversely, if UPS exceeds market expectations, the stock could experience a substantial increase due to current pessimism [8].

Core Insights - United Parcel Service (UPS) is experiencing revenue weakness due to geopolitical uncertainty and high inflation impacting consumer sentiment and growth expectations [1] - The company has seen a decline in package shipping volumes, with average daily volumes down 3.8% year over year in the first half of 2025 [2] - UPS has made a strategic decision to reduce its business with Amazon, aiming for a volume reduction of over 50% by June 2026, which is expected to keep near-term volumes subdued [2] Financial Performance - Total revenues at UPS fell 1.7% year over year in the first six months of 2025, driven by sluggish volumes [2] - The Zacks Consensus Estimate for UPS' earnings has been revised downward over the past 60 days for the third quarter, fourth quarter, full-year 2025, and full-year 2026 [11] - UPS shares have declined over 30% in 2025, underperforming its industry [5][9] Market Conditions - The trade-related economic uncertainty is contributing to UPS' challenges, with no revenue or operating profit guidance provided for 2025 due to macroeconomic uncertainty [3] - Volatility in the U.S. stock market is expected to persist, affecting UPS' top line despite cost-cutting efforts [3] Competitive Landscape - FedEx, a rival of UPS, is also facing weak demand and is implementing cost-cutting measures, including layoffs and operational reshuffling [4] - FedEx's DRIVE program has resulted in significant cost savings, indicating a competitive response to the current market conditions [4]

Core Viewpoint - United Parcel Service (UPS) reported a mixed earnings performance, with a decline in earnings per share and a slight increase in revenues, raising questions about future performance leading up to the next earnings release [1][2]. Financial Performance - Quarterly earnings per share were $1.55, missing the Zacks Consensus Estimate by $0.01 and declining 13.4% year over year [2]. - Revenues totaled $21.2 billion, surpassing the Zacks Consensus Estimate of $20.8 billion but decreasing 2.7% year over year [2]. Segment Performance - U.S. Domestic Package revenues were $14.08 billion, down 0.8% year over year, with an adjusted operating profit of $982 million, reflecting a 1.4% decline [3]. - International Package revenues reached $4.48 billion, up 2.6% year over year, but the adjusted operating profit fell 17.2% to $682 million [4]. - Supply Chain Solutions revenues decreased 18.3% year over year to $2.65 billion, with an adjusted operating profit of $212 million, down 13.1% [5]. Future Guidance - UPS did not provide revenue or operating profit guidance for 2025 due to macroeconomic uncertainty, but affirmed capital expenditures of approximately $3.5 billion and dividend payments of around $5.5 billion [6]. - The company anticipates $3.5 billion in expense reductions from network reconfiguration and Efficiency Reimagined initiatives [7]. Estimate Trends - There has been a downward trend in estimates, with the consensus estimate shifting down by 15.64% [8]. - UPS currently holds a subpar Growth Score of D and a similar score for momentum, but a B score for value, placing it in the top 40% for value investors [9]. Overall Outlook - The stock has an aggregate VGM Score of C, indicating a below-average return expectation in the coming months, reflected in a Zacks Rank of 4 (Sell) [10][11].