Rosa: UPS is trading at its biggest discount to the S&P 500 in history

Investment Opportunity - UPS's stock is considered undervalued, trading at its largest discount to the S&P 500 in history [2] - The stock has an almost 8% dividend yield, suggesting a robust dividend [2] - The company is essential to the global economy and generates enough free cash flow to cover the dividend [2] - Potential for stock price appreciation as UPS addresses cost issues and reduces its reliance on Amazon [2] Industry Dynamics & Regulatory Impact - Stricter enforcement of English language and citizenship requirements for truck drivers could remove as many as 200,000 truckers from the road [4] - This enforcement, combined with existing supply chain issues, could lead to an undersupply of trucking capacity and higher trucking rates in 2026 [5][6] - UPS is a bellwether for the broader transport and freight economy, particularly regarding tariff impacts [7] Company Strategy & Financials - UPS plans to cut 20,000 jobs, impacting blue-collar employment [9] - The international segment of UPS provides clear insights into the impact of tariffs, as the company separately reports domestic and international results [8]