Core Insights - The average tax refund in 2024 is $3,138, similar to the previous year's average of $3,167, providing potential extra cash for investments [1] Group 1: AbbVie - AbbVie is a leading healthcare company with a market capitalization of approximately $370 billion and offers a dividend yield of 3.1%, significantly higher than the S&P 500 average of 1.3% [3][6] - Concerns about AbbVie losing patent protection for its top-selling drug Humira are mitigated by the success of its newer immunology drugs, Skyrizi and Rinvoq, which generated $17.7 billion in revenue last year, while Humira's sales fell by 38% to just under $9 billion [4] - AbbVie's diverse business includes treatments in immunology, oncology, neuroscience, and aesthetics, with potential growth in the aesthetics sector driven by rising popularity of GLP-1 weight loss treatments and Botox [5] Group 2: Alibaba Group - Alibaba has gained traction among growth investors, with its stock rising over 60% in the past six months, bolstered by the launch of its AI chatbot Qwen 2.5-Max, which reportedly outperforms ChatGPT-4o [7][8] - Despite a modest sales growth of 8% in the last quarter of 2024, reaching $38.4 billion, the partnership with Apple for AI features signals promising future growth [8][9] - The stock is trading at 13 times expected future profits, presenting a potentially attractive investment opportunity, alongside a dividend yield of 1.5% [9] Group 3: FedEx - FedEx, a key player in shipping and logistics, offers a dividend yield of 2.1% and is well-positioned to benefit from the growing e-commerce market, projected to expand at an annual rate of around 19% through the end of the decade [10] - Recent challenges include a 1% decline in sales over the past two quarters and a 23% drop in operating income, but the company is focusing on efficiency improvements and AI investments to enhance profitability [11][12] - With a forward price-to-earnings ratio of just 12, FedEx is considered a potentially undervalued investment for long-term holders [12]

Company Overview - United Parcel Service (UPS) is widely recognized for its extensive delivery network, characterized by its brown delivery trucks and uniforms, which are ubiquitous in the United States [2] - The company excels in providing quick and cost-effective package delivery services, and it has a store network that facilitates returns, which is increasingly important due to the growth of online retail [3] Competitive Landscape - The package delivery industry is becoming more competitive, particularly with Amazon creating its own in-house delivery network [3] - UPS has been focusing on cost management by closing facilities and automating delivery processes, such as using RFID tags for package tracking [4] Financial Performance - UPS experienced a significant decline in stock price, dropping from over $230 in 2022 to below $120 as the pandemic's impact lessened [6] - The company faced challenges, including divesting noncore businesses and refocusing on more profitable sectors like healthcare, which complicated its financial outlook [7] - However, UPS reported improved revenue and earnings in the latter half of 2024, indicating a recovery in its business performance [8] Strategic Decisions - UPS announced a strategic decision to reduce its volume with Amazon by 50%, which is aimed at improving long-term profit margins despite the potential short-term impact [9] - This decision reflects UPS's strengthened position after years of restructuring, allowing it to pivot away from low-profit volume associated with Amazon [10] Future Outlook - UPS is expected to benefit from its strong return network, which remains a competitive advantage over Amazon's in-house capabilities [11] - The company is seen as a potential buy under $120 per share, especially with a generous 5.5% dividend yield, appealing to various types of investors [12]