Core Viewpoint - United Parcel Service, Inc. (UPS) has a market capitalization of $100 billion and has underperformed the broader market over the past 52 weeks, although it has shown strong year-to-date performance [1][2]. Group 1: Market Performance - Over the past 52 weeks, UPS shares have gained 4.3%, while the S&P 500 Index has increased by 15.6% [1]. - Year-to-date, UPS stock is up 18.9%, significantly outperforming the S&P 500's return of 1.7% [1]. - UPS has also underperformed the Pacer Industrials and Logistics ETF, which rose by 20% over the past 52 weeks, but has outperformed its 10.4% year-to-date growth [2]. Group 2: Company Strategy and Financial Outlook - On January 28, UPS shares fell by 3.3% following the announcement of plans to eliminate up to 30,000 operational roles as part of a turnaround strategy, which includes reducing the volume of Amazon shipments processed [4]. - Analysts project that UPS's earnings per share (EPS) will decline by 1% year-over-year to $7.09 for fiscal 2026 [4]. - The company's earnings surprise history is mixed, with three out of the last four quarters exceeding consensus estimates [4]. Group 3: Analyst Ratings and Price Targets - Among 28 analysts covering UPS, the consensus rating is a "Moderate Buy," consisting of 11 "Strong Buy," one "Moderate Buy," 13 "Hold," one "Moderate Sell," and two "Strong Sell" ratings [5]. - AllianceBernstein maintained an "Outperform" rating on UPS and raised its price target to $128, indicating an 8.5% potential upside from current levels [7]. - The mean price target for UPS is $114.04, while the highest target of $130 suggests a potential upside of 10.2% [7].

Group 1 - DAT Freight & Analytics is hosting free Driver Appreciation BBQ events on September 15 and 16 to thank truckers for their contributions to the economy [1] - The events will take place at two locations in South Dakota: Brandon and Hartford, from 11 a.m. to 3 p.m. on both days [1] - Professional truck drivers are invited to enjoy a free meal from the Backyard BBQ food truck and visit the DAT booth for additional information [1]

Market Overview - U.S. equities rebounded in Q2 2025 after a correction in Q1, overcoming tariff and growth concerns as well as geopolitical issues [2] - The recovery was driven by a return to AI market leadership, with hyperscalers committing to high levels of AI-driven capital expenditures [2] - Semiconductor companies experienced solid earnings and renewed expectations for widespread AI adoption [2] Company Performance - Broadcom (AVGO) benefited from increased adoption of its custom-designed chips as an alternative to Nvidia's GPUs, leading to a share rally following reduced U.S.-China tariffs [3] - Microchip Technology (MCHP) showed strong financial results, aided by a cyclical rebound and the return of its long-tenured CEO [4] - Meta Platforms (META) saw its shares rise due to continued gains in digital advertising, supported by AI enhancing engagement and monetization [5] Sector Analysis - The IT and financial sectors contributed positively to the portfolio, while health care and energy sectors were the main detractors [17] - Stock selection in industrials, health care, energy, consumer staples, and consumer discretionary sectors negatively impacted relative returns [18] - McKesson (MCK) performed well due to strong fundamentals in U.S. pharma and specialty distribution [5] Portfolio Positioning - New positions included Exxon Mobil (XOM), which is lowering costs and emissions while increasing production, and Boeing (BA), which is ramping up 737 production [7] - Procter & Gamble (PG) was added to the portfolio as a higher-quality name trading at a discount, expected to provide stability [8] - Merck was replaced with AstraZeneca (AZN) due to concerns over Merck's patent expiration on Keytruda [9] Outlook - The market is characterized by elevated geopolitical and policy uncertainty, but there are opportunities for disciplined long-term stock pickers focusing on value stocks [11][12] - The valuation disparity between growth and value stocks has widened, suggesting potential for value recovery following significant underperformance [12][16]