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United Parcel Service, Inc. (UPS)

NYSE - Nasdaq Real Time Price. Currency in USD
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211.64-1.59 (-0.75%)
At close: 4:02PM EDT
211.73 +0.09 (0.04%)
After hours: 05:54PM EDT
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  • h
    honestamerican
    OK Apples to Apples

    UPS Return on Assets: 6.52 percent Return on Equity: 98.74 percent

    FDX Return on Assets: 6.36 percent Return on Equity: 24.64 percent

    Based on this one metric please elaborate why the competition seems to be viewed as the darling of Wall Street???

    The above information was gleaned from statistics from Yahoo finance for the two companies
  • h
    honestamerican
    Coming positive earnings surprise on the 27th. Can't get much better. By holding the dividend payout rate to a manageable amount it allows for more latitude in operations. Add to that the previous heavy capital expenditures the past few years also allows for significant return to the bottom line. Looking back CAPEX ramp up was one of the smartest things they ever did, even though at the time the skeptics disapproved. The centers are like peak every day. Hiring many, many new folks signifying tremendous growth. All business units are firing on all cylinders.
  • D
    Dudesbag
    Here's a good summary of the relationship between UPS and Roadie. It looks like they're on track to be our same day, localized delivery arm. It's a gig driven model with the requisite tracking features. Hopefully, the Teamsters see the need for competitive purposes. UPS Teamster part-timers could always get a job @ Roadie too- maybe with UPS priority recommendation? https://www.roadie.com/resources/press-releases/roadie-series-a
  • G
    Gary
    having second thoughts about this market. sold off most of my holdings this AM. the market behavior does not sit right with me. i held a lot of cyclicals and they lost momentum. 10yr treasury yield declining. not sure what is behind all this- delta variant worries? this market is at nosebleed highs. better safe on sidelines than sorry. ups appears to be in the sweet spot though. it wins delta variant impacts or not. so not a bad place to be. maybe that is why the momentum. people looking for safe haven stocks.
  • h
    hunkeydorey
    Why does our government. continue to let AMAZON ruin. other businesses and put people out of work ruin people's life unbelievable, what is going on in this country. .How is this working out for you people who VOTED for JOE, do you now see how inflation is going on and the price of everything is going up leaps and bounds daily. THIS IS CALLED SOCIALISM. I GUARANTEE HE COULD NOT GET ELECTED TODAY , EVEN WITH IS CHEATING
  • D
    Dudesbag
    We're about a month away from the 7/27 UPS earnings call. 19 analysts have a consensus 12 month target of $221 or an upside of around 7.5%. There have only been a handful of EPS upward changes probably due to the recent investment conference being so conservative and lacking forward guidance. Those factors allow a good window for a solid beat. When compared to FDX, it would be good to close the forward P/E gap which now stands at an historically good 19.6 for us but a very low 14 for FDX. If our earnings can get us down to 18 or so we would hit near our historical low and significantly lower than the S&P. Hopefully all trends keep going in the right direction.
  • T
    TP Picks
    UPS will benefit with investors jumping from Fedex to UPS because UPS is much more well run and profits are going to continue to fly higher.
  • J
    J.C.
    Only 6% EPS growth projected for 2022 vs 2021, and stock has a forward PE ratio of over 18x. FedEx EPS growth projected to grow 12% next year, yet forward PE ratio is only 12.6x. FDX's revenue growth is projected to grow faster than UPS. Only 7 of the 27 analysts who cover UPS have it as a Buy or Strong Buy. 22 of the 27 analysts covering FDX rank it as a Buy or Strong Buy. FDX just increased it's CapEx budget by 20% for this year as a result of stronger than expected volumes. UPS is not increasing their CapEx and has stated they don't want to be any bigger...just better. Which company deserves the 18x PE multiple? The company with the higher revenue and EPS growth that is investing more capital to expand capacity and improve automation, or the company with 1/2 as much growth? Hmmm
  • G
    Gary
    a panic over inflation - what would one expect after a pandemic and interest rates near zero. we are a long way from equilibrium. with a strengthening economy, the markets will rise for some time -in fits and starts -as interest rates slowly rise. and fed is talking hikes in 2023. a 30 yr treasury paying 2% vs. UPS, which yields 2%, expected dividend hikes, and 16% projected annual growth over next 5 yrs. Let's see- which is the better value? UPS and a lot of stocks out there still a better value than treasuries. I won't let computer algos, hedge funds and day traders steal my money. It is too early to bail on this market.
  • G
    Gary
    the markets appear to be petering out ... and the gains are more focused to big tech. we are at nosebleed levels ..priced for perfection ... watch out ...
  • D
    Dudesbag
    What are people's thoughts on whether the Teamsters might be open to discussions on outsourcing same day delivery? We're going to be leaving a big hole in our service portfolio as others keep moving in that direction.
  • G
    Gary
    the market is faltering ............................ugghhh............
  • A
    Anna
    Has anyone ever noticed how filthy the Amazon trucks/vans are? First thing that pops into my head when I see one in my neighborhood. Amazon = dirty business.
  • D
    Dudesbag
    Once again, Amazon has done the "giant squid" routine on its competitors. After purchasing a number of aircraft during in recent times, Amazon has announced that it is transporting cargo for the postal service. That impacts both UPS and FDX as we were the primary recipients of that volume. One wonders what the pay scale of the pilots who are contracted by Amazon to fly that aircraft vs. the rate of pay/benefits of UPS and FDX pilots under their strong unions. It just appears that Amazon has no limits as to what segments of the logistics business it targets. UPS and FDX just need to diligently keep pace until via monopoly or anti-trust actions congress might decide to break up some of the big behemoths.
  • N
    N
    All I know is every Amazon package I see delivered around me is derived by either UPS or the USPS they need to start squeezing Amazon before they get big enough not to need UPS!
  • D
    Dudesbag
    It sure seems like an investor over-reaction to a rational investor conference. No doubt not providing the earnings forecast or cost cutting plans dinged us as it always will. But in my view, the rest of the presentation was as expected. We're right in the ball park of analyst expectations regarding revenues for 2023 which seemed to have been the focus. We continue to pursue that level despite targeting the more lucrative SMB and health care volume and moving to protect ourselves from the Amazon ongoing delivery expansion. As a result, gross revenues might go down as better margins are preferred. Here's something I found odd. Overall, analysts are expecting UPS 2023 operating margins to come in around 13%. In a story generated by a Bloomberg reporter, he reported that UPS indicated 10.5% to 12%. HOWEVER, Reuters reported 12.7% to 13.7% which according to the UPS story on the website is the accurate number. It would seem Bloomberg should be issuing a correction as they are a major finance source and that is a major metric. I suspect as the conflict is resolved and perhaps more attention is focused on that true number, there is no reason why shares shouldn't rise. It would seem that UPS is doing things right to optimize profitable volume over taking small margin stuff that actually might be helping Amazon in its longer range, in house shipping goals. FDX got out early and we're apparently following suit while modifying our operations accordingly. My prediction is around $203 or so by week's end and a slow climb higher towards analyst targets in coming weeks. I think This reactionary drop to below $200 was a temporary blip and there's no reason to believe we're not solidly on the path that should be followed.
  • R
    Ralphy Boy
    Amazon is gonna find out real quick how much it costs to deliver to rural America. They may have the density to break even in the city and suburbs but when they take the good density away from UPS or usps guess what, rural rates don't get discounts. Good luck short sited Amazon
  • K
    Kennedy
    Its called a pump
  • G
    Gary
    labor costs could be an issue going forward for those not under temasters contract .... fdx stock price fell due to labor cost pressures ... teamsters contracts are in place -but costs for other workers?
  • G
    Gary
    comparisons to last year's Q2 are tougher. that is when online shopping really took off due to the pandemic. of course, when the spike hit, it was a shock and carriers were not ready for it. this quarter's comparisons may be toughest of any quarter this year. so we just gotta grin and bear it ...