Core Insights - United Parcel Service (UPS) has experienced a significant decline in stock value, but is implementing major changes aimed at long-term improvement [1][12] - The pandemic initially boosted UPS's business due to increased e-commerce, but the subsequent drop in demand led to a stock price crash [5][6] - UPS is undergoing painful short-term changes, including union negotiations and exiting less profitable business segments, which are expected to incur upfront costs [7][8] Business Changes - UPS is focusing on enhancing technology, which requires substantial capital investment but is anticipated to yield long-term benefits [9] - The company is reducing its relationship with Amazon, a major customer, to concentrate on more profitable business lines [11] - Despite current challenges, there are signs of progress, such as a 5.5% increase in profit per package in the U.S. business, indicating potential for a turnaround [14][15] Financial Performance - UPS's stock has lost nearly two-thirds of its value since the pandemic peak, and the dividend yield is currently high at 7.8% [12] - The dividend payout ratio is concerning at nearly 100%, suggesting a potential for future cuts as the company continues its overhaul [13]

Key Points These three stocks have fallen sharply, pushing up their dividend yields. Each of them faces some challenges, but they may overcome them. If they do, this will turn out to have been a great time to buy. 10 stocks we like better than United Parcel Service › Dividends are a wonderful thing, because healthy and growing dividend-paying stocks will tend to keep paying their shareholders regularly, no matter what the overall economy is doing. Better still, they'll generally increase their pa ...

Core Insights - Uber Technologies anticipates its grocery and retail delivery segment to achieve an annual run rate of $12.5 billion in gross bookings by year-end, up from a previous run rate of $10 billion reported in May [1][2]. Group 1: Business Growth and Strategy - The company has experienced faster-than-expected growth in non-restaurant deliveries, prompting this optimistic projection [2]. - Since the start of the year, Uber has added 1,000 new retailers to its delivery service, enhancing its market presence [3]. - The introduction of the Fresh Days program will provide discounts of up to 50% on select grocery items, aiming to attract more customers amid rising grocery prices [3][4]. Group 2: Customer Experience Enhancements - New tools on the Uber Eats platform allow customers to manage their orders more effectively, including options for item replacements and quality checks through shopper-provided photos [5]. - The company is focusing on integrating its mobility and delivery apps to encourage cross-usage among customers, as stated by CEO Dara Khosrowshahi [6]. Group 3: Retail Partnerships - Notable retailers that have joined Uber's delivery platform this year include Aldi, Best Buy, Dollar Tree, and Petco, expanding the range of products available for delivery [7].

Group 1: Market Overview - The stock market has performed well, with the S&P 500 rising by 14% year to date as of September 22, hitting new highs [1] - Despite the overall market performance, many high-yielding dividend stocks have struggled [1] Group 2: Investment Opportunities - Three potentially undervalued stocks for income investors are United Parcel Service (UPS), Kimberly-Clark, and Comcast, all trading near their 52-week lows and offering dividends over 4% [2][8] Group 3: United Parcel Service (UPS) - UPS offers a high dividend yield of 7.8%, significantly above the S&P 500 average of 1.2%, but its stock has declined over 30% this year due to concerns over economic conditions [4] - For the first half of the year, UPS reported revenue of $42.8 billion, a slight decrease of less than 2% from $43.5 billion in the same period last year [5] - UPS's diluted earnings per share (EPS) was $2.91, averaging $1.46 per quarter, while the quarterly dividend payout is $1.64, indicating a potential risk of dividend cuts as free cash flow of $3.5 billion is below the $5.4 billion paid in dividends [6][7] - The stock trades at a price-to-earnings (P/E) multiple of less than 13, suggesting it may be a bargain buy in the long run, but short-term challenges are anticipated [7] Group 4: Kimberly-Clark - Kimberly-Clark is recognized as a Dividend King, having raised its dividend for 53 consecutive years, with a recent increase of a little over 3%, resulting in a current yield of approximately 4.1% [8]

Drone Delivery Industry Overview - Drone delivery is seen as a game-changer, but faces regulatory and safety hurdles [1] - Current food delivery methods using trucks are inefficient compared to drone delivery [2] - The industry is focusing on overcoming challenges like collision avoidance and FAA regulations [1][11][12] Company Strategy & Goals - The company's platform is designed to deliver anything, but is currently focused on food delivery in suburban areas [4] - The goal is to deliver food within 5 minutes at a cost of $2-3, eliminating human involvement [5][10] - The company aims to cover the entire Dallas-Fort Worth metro area by 2026 [6] Cost & Revenue Model - Drone delivery aims to significantly reduce costs compared to traditional methods by eliminating the need for drivers and cars [8][9] - The company operates on a pay-per-flight model, charging platforms like Uber Eats for each delivery [10][11] - The company handles all aspects of the delivery process, including safety, maintenance, FAA certification, and drone construction [11][12] Technological Advantages - Drone delivery offers point-to-point speed and efficiency, avoiding traffic congestion [8] - The drones are lightweight (20 lb) and energy-efficient [8] - Autonomy is a key component, similar to self-driving cars, to lower the cost of service [9]

Workers at Canada’s national postal company are on strike for the second time in less than a year, shutting down a delivery service for millions of households and businesses https://t.co/sEI1dSqnZ9 ...

Core Insights - Uber is launching a "Fresh Days" feature to offer discounts of up to 50% on fresh produce, meat, and dairy items, aiming to enhance its grocery delivery service and compete with rivals like Amazon [1][2] - The initiative is a response to grocery inflation, which has been a concern for consumers in recent years [2] - Exclusive offers for Uber One subscription members include a 30% discount on fresh groceries every Tuesday in the US [3] Company Initiatives - Uber is introducing new grocery shopping features, including refund eligibility icons for items that do not arrive fresh and AI-driven substitutions for unavailable products [4] - The company is positioning itself to strengthen its presence in the grocery delivery market, which is becoming increasingly competitive [2][9] Industry Context - The grocery delivery sector is experiencing significant growth, with traditional retailers like Dollar General enhancing their delivery capabilities through partnerships with services like DoorDash and Uber Eats [10] - Amazon is expanding its free same-day delivery service for perishable groceries, planning to double its reach in the US by the end of the year [9]

United Parcel Service, Inc. (NYSE:UPS) is one of the Best Undervalued Stocks to Invest in According to Reddit. On September 18, BMO Capital Markets reduced the rating on the company’s stock to “Hold” from “Buy”, decreasing the price objective to $96 from $125. The analyst doesn’t see a demand recovery in United Parcel Service, Inc. (NYSE:UPS)’s business-to-business segment. This situation can be exacerbated if the broader US economy continues to cool or sees a recession. BMO Capital Markets Reduces Rating ...

Core Insights - FedEx Corporation (NYSE:FDX) is recognized as one of the best undervalued stocks to invest in, according to Reddit discussions [1] - TD Cowen raised the price target for FedEx stock to $271 from $269 while maintaining a "Buy" rating, citing the company's strong Q1 2026 performance despite challenges [1][2] - The company is expected to achieve a revenue growth rate of 4% to 6% year-over-year for FY 2026 [2] Financial Performance - FedEx's consolidated operating results showed improvement, particularly in US domestic package revenue and ongoing structural cost reductions [2] - The company exceeded expectations in Q1 2026, highlighting the effectiveness of its strategic initiatives [1][2] Strategic Developments - The planned spin-off of FedEx Freight into a new publicly traded company is progressing and is anticipated to be completed by June 2026 [2] - Effective January 5, 2026, FedEx will increase parcel and Freight LTL shipping rates by an average of 5.9% [2] Market Position and Challenges - Despite facing macroeconomic headwinds such as tariff threats and weak demand for higher-value shipping, FedEx demonstrated resilience [3] - The separation of Express and Freight is expected to unlock value and improve capital discipline at Express, addressing market undervaluation [3]

This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. UPS is seeking to improve its bottom line through employee buyouts, but the move could introduce service risks and strife with the International Brotherhood of Teamsters union, industry observers say. The delivery giant is in the midst of voluntary buyout programs for full-time drivers, who are represented by the Teamsters, and select operations managers ...