Canada markets close in 3 hours 31 minutes

United Parcel Service, Inc. (UPS)

NYSE - Nasdaq Real Time Price. Currency in USD
Add to watchlist
194.37+0.58 (+0.30%)
As of 12:29PM EDT. Market open.
Sign in to post a message.
  • D
    Dudesbag
    So, what's going on around us as peak season nears? The director of the port of LA reports a massive backlog of 2 weeks of ships anchored. That equates to 200K containers with more coming. They're operating on a 24/7 schedule but as we know the scheduled removal of containers thru drivers and transport to the rails is fraught with delays. The reopening worldwide from the Pandemic and the subsequent supply chain collapse may perhaps alter the thinking away from just in time inventory to more of a warehousing system like the "old days." Meanwhile over at Amazon, they've announced plans to hire 150K more seasonal workers on top of a significant # of recent hires. In 2019, they paid these workers a minimum of $15. Now that pay rate is up 20% to $18 (more in selected areas) with in an unheard of $3K sign on bonus in certain competitive markets. All this hiring suggests volume is going to soar both within and outside of Amazon as on-line shopping is still as strong as ever. So no doubt our revenues will show a nice growth trend. The key is going to be controlling costs thru operational efficiencies, continuing to focus on profitable volume, expanding the weekend and same day offerings and looking for quickly accretive acquisitions to strengthen our service portfolio. The UPS plans are in place and we need to believe that the peak season weather conditions are no worse than in other years.
  • R
    Rick
    Looks like Amazon has a huge turnover issue, churning north of 30% of their insiders. And bigger issue with contract drivers. They’re trying to push more of their volume to UPS and Post Office but neither is biting. Will pose major service issues for Amazon. And I understand the churn at UPS is so far manageable, all hubs are producing, and peak hiring goals are being met. Should be a positive earnings report and peak season for the brown team.
  • R
    Rick
    JC, so tell us, are you an ex UPS supervisor that never made manager? Why so negative? Did you sell all your stock at $75?? UPS invested over $13 billion in Capex in 2018-2020 and took a lot of heat for it at the time. Abney stayed the course. HR will tell you UPS is not incurring the staffing issues at FedEx and the PO. The reason is simple. UPS drivers are the GOLD standard in the industry. The path to that job is thru the part time ranks in operations. It’s called opportunity, which UPS offers. UPS has now figured out how to manage peaks and valleys of volume distribution. Give credit where it’s due. Big Brown is firing on all cylinders!
  • G
    Gary
    Members of Congress have accused Amazon executives of misleading or lying to an antitrust committee about its business practices, following recent reports that the company uses third-party seller data to copy products and promotes those versions in search results.

    You gotta just love Amazon. Stiffing its own customer base .... lol
  • N
    Nigi
    Successful people don't become that way overnight. What most people see at a glance wealth, a great career, purpose is the result of hard work and hustle over time. I pray that anyone reads this will be successful in life
  • h
    honestamerican
    The port problem involvement is a big win for UPS. It will now dovetail the company into moving shipping containers all over the country. By the cost of getting the containers from International origins to the business customers in the U.S. UPS will have another large and very profitable source of additional revenue, The optics of their reliability will also benefit brand recognition. Another big win is for their Teamster drivers moving the product. Winning with infrastructure already in place.
  • R
    Rick
    So I’m hearing whispers that UPS will hit their numbers which is a good thing but our worry is how Tome will present it. So far she seems to be a half empty kind of spinner. She’ll have a lot of positives to hit on but as you know, future stock performance hinges on expectations. If she pushes the doom and gloom of inflation, worker shortages, supply chain back ups, etc., we could get slammed. If she stays positive, earnings day could be a plus.
  • A
    Andrew
    Big pre market this morning. Looks like we're heading to $190 again. Huge news.
  • D
    Dudesbag
    Mike Toth, an ex-Amazon operations executive, is now leading LaserShip and they've decided their best move for expanding services is via acquisition. Their corporate view is that shippers of all sizes are looking for alternatives to what UPS and FDX have been offering price-wise. UPS at least has kept their superior service levels while FDX has been charing high premiums with service issues. https://www.wsj.com/articles/lasership-is-buying-package-carrier-ontrac-in-a-1-3-billion-deal-11634166579
    The acquisition would extend LaserShip’s reach, bringing the last-mile delivery specialist closer to becoming a national carrier
    The acquisition would extend LaserShip’s reach, bringing the last-mile delivery specialist closer to becoming a national carrier
    www.wsj.com
  • J
    J.C.
    UPS investors need to pay attention to what UAW is demanding from Deere, and what Deere ends up conceding. Given the current pro union leftist administration, and tight labor supply, look for unions to become very bold and militant. The Teamsters are already on written record as calling for more "militant" members and action against management in upcoming negotiations. It isn't going to bode well for UPS when their contract is re-negotiated within 2 years, and the union militant leadership will be looking to muscle their will on the naive and inexperienced Carol Tome. FDX is the much better buy at the current stock price and PE multiples, but also has their own leadership problems as they appointed a Marketing guy who has no operational or financial management experience to be both their CEO and COO. Fred needs to appoint a strong COO to bring discipline back to FedEx.
  • G
    Gary
    so an analyst upgrades the stock and everyone runs out and buys it. pretty funny. so if the analyst says to jump off a bridge i suppose a lot of folks would do that too. can't folks think for themselves? even with all the alcohol in my system my brain cells can still process information and make a decision without relying on some bogus analysts to tell me what to do with my money. the analysts work for brokerages and are there to generate business. upgrade downgrade downgrade upgrade ...so folks keep buying and selling....
  • d
    david
    i just find it hard to believe , with raises and the cost of living allowance since the beginning of august , we can beat consensus.....we definitely will not hit cost per piece, which took us down hard last time.....just saying its been a decent couple of years and the cost of doing business has gone up............go brown
  • R
    Rick
    We got a big endorsement from Stifel this morning. An upgrade to buy with a 20% increase in price by the end of the year based on peak and UPS strategy. Stifel is one of the tougher analysts to impress so their endorsement is a big deal. The premarket bump seems to agree as well. Should be a winning day!
  • D
    Dudesbag
    Here's a good story summarizing what we all know about the trucking industry in America. Since there is about a 1M driver shortage in America, it would seem that major focus should go to training people for this industry. The interviewed drive made a god point about the truck drive training schools having been shut down during the pandemic and falling behind their graduation schedules. That leads me to a question about UPS's situation concerning feeder and package car drivers. Since we generally promote from within, are we experiencing any problems in driver staffing? https://www.democraticunderground.com/1017687002
    Truck Driver Shortage Fuels Supply Chain Issues - The 11th Hour - MSNBC - Democratic Underground
    www.democraticunderground.com
  • A
    Andrew
    Bill Gates is big on UPS. One of his top 10 holdings. Buy buy buy !
  • A
    Andrew
    UPS is up 15.8% YTD. Great dividend investment.
  • D
    Dudesbag
    A comprehensive Amazon robotics and warehousing story that touches on employee turnover and massive facilities popping up all over. They have a huge employee turnover problem and they see this as their only way out. Reflecting on all this one wonders if they are simply too large an entity and are losing their sense of employee/employer connection. https://www.inquirer.com/business/amazon-robots-delaware-largest-warehouse-fulfillment-20211017.html
    A visit to the future of shipping: Amazon's largest-ever warehouse replaces GM plant
    A visit to the future of shipping: Amazon's largest-ever warehouse replaces GM plant
    www.inquirer.com
  • l
    lonny s
    So, Yall know I got the 411 on the Phoenix and LA hubs. CHRISTMASS NUMBERS STARTED TWO WEEKS AGO. Hub managers are seeing a 3k to 5k package increase per day VS last year end of November numbers. Merry Christmass to us. So, I bought another 75k worth today.
  • J
    J.C.
    "Better not Bigger" UPS not going to invest much capital into expanding brick and mortar capacity, and will "milk the assets." That's the strategy of Carol Tome, former CFO at Home Depot who was passed over to be Home Depot's CEO when that positioned opened up....but was good enough to become UPS's CEO. What happens when there are only 3 national parcel carriers, and they are unwilling to expand brick and mortar capacity at a fast enough pace to accommodate the growth in the marketplace? The carriers price gouge their customers, on time service plummets, and new entrants enter the marketplace to fill the void. We saw Amazon invest BILLIONS to build their own transportation network when UPS, FDX, and USPS failed to make the investments necessary to accommodate eCommerce growth and provide Amazon with quality service at an economic price. We see Walmart is in the process of doing the same. Now we see low cost regional parcel carriers significantly accelerate their capex investments to expand their footprints to provide the needed capacity that UPS, USPS, and FDX are unable to provide. Case in point......LaserShip has just announced they want to extend their regional parcel-delivery operations across the entire U.S. They are buying Western rival OnTrac Logistics putting the business on a path to offer two-day shipping to nearly three-quarters of the U.S. population. LaserShip’s Josh Dinneen says he sees an opportunity to get bigger with an “aggressive expansion” plan next year that will fill in some areas like Chicago and Texas. DHL has also announced earlier this year that they will significantly increase their capex to expand their operations in the U.S. Despite there being record low interest rates to fund expansion of brick and mortar to accommodate growth i the marketplace, UPS, USPS, and to a lesser extent FDX choose to hunker down and pay down debt and increase dividends. The clock is ticking, and the high cost unionized carriers are the most vulnerable to losing significant share along with profit margins in the not too distant future. UPS will make a lot of money in the short term with their current no growth strategy, but will be the loser over time.
  • D
    Dudesbag
    We all read last week where the Post Office is planning to make changes in a number of its operations and services. We know that Postmaster General Louis DeJoy has been an abysmal leader of the entity. Not that long ago, he was fingered for awarding a no-bid contract to XPO Logistics. A company he had previously founded was sold to XPO and as a result, he hold shares worth $75M in the company. Clearly in the eyes of any observer this would constitute a massive conflict of interest. But the Postal Board is just a paper tiger and is replacing its members takes essentially an act of congress. In any event, here's a pretty simplified overview of the situation from my Philly area local comment board. https://patch.com/pennsylvania/springfield-pa/s/hujxf/pa-joins-coalition-demanding-review-of-us-postal-service-overhaul?utm_term=article-slot-1&utm_source=newsletter-daily&utm_medium=email&utm_campaign=newsletter
    A formal complaint was filed this week as leaders from several states seek greater visibility into the future of the US Postal Service.
    A formal complaint was filed this week as leaders from several states seek greater visibility into the future of the US Postal Service.
    patch.com