3 Reasons to Buy UPS Stock Like There's No Tomorrow

Group 1 - UPS is currently trading near 52-week lows, down approximately 20% over the year, and has lost half its value since early 2022, indicating it is an unloved company with a dividend yield of 4.8%, the highest in its history [2][3] - Traditional valuation metrics such as price-to-sales, price-to-earnings, and price-to-book ratios are below their five-year averages, reflecting the company's weak operating performance [3] - Key performance metrics began to improve in the latter half of 2024, with CEO Carol Tome announcing a return to revenue and profit growth, confirming positive momentum in the fourth quarter [4] Group 2 - UPS has a well-established logistics system that includes sorting facilities, airplanes, and a broad store base, making it difficult for competitors to replicate its business model [7][8] - Major competitors include the U.S. Post Office, Deutsche Post (DHL), and FedEx, but UPS maintains a strong market position despite potential disruptions [9][10] Group 3 - UPS announced a significant reduction in its dealings with Amazon, its largest customer, which is expected to decrease by 50%, causing concern among investors [11] - This decision is part of UPS's strategy to focus on higher-margin business, as Amazon represents a high-volume but low-margin customer, allowing UPS to strengthen its financial performance in the long term [12] - The company is upgrading its business model by reallocating resources to more profitable areas, which should be viewed positively by long-term investors [12]