|Bid||114.36 x 800|
|Ask||114.88 x 1200|
|Day's Range||114.25 - 115.88|
|52 Week Range||82.00 - 125.31|
|Beta (5Y Monthly)||0.84|
|PE Ratio (TTM)||23.15|
|Forward Dividend & Yield||4.04 (3.53%)|
|Ex-Dividend Date||May 22, 2020|
|1y Target Est||N/A|
What happened Shares in United Parcel Service (NYSE: UPS) rose 11.5% in June, according to data provided by S&P Global Market Intelligence. In common with its direct peer FedEx (NYSE: FDX), which rose 7.
(Bloomberg) -- Boeing Co. hasn’t told employees, but the company is pulling the plug on its hulking 747 jumbo jet, ending a half-century run for the twin-aisle pioneer.The last 747-8 will roll out of a Seattle-area factory in about two years, a decision that hasn’t been reported but can be teased out from subtle wording changes in financial statements, people familiar with the matter said.It’s a moment that aviation enthusiasts long have dreaded, signaling the end of the double-decker, four-engine leviathans that shrank the world. Airbus SE is already preparing to build the last A380 jumbo, after the final convoy of fuselage segments rumbled to its Toulouse, France, plant last month.Yet for all their popularity with travelers, the final version of the 747 and Europe’s superjumbo never caught on commercially as airlines turned to twin-engine aircraft for long-range flights. While Boeing’s hump-nosed freighters will live on, the fast-disappearing A380 risks going down as an epic dud.The grand jetliners also face another indignity: The Covid-19 pandemic threatens to leave their manufacturers scrounging to find buyers for the last jumbos built.“As it turned out, the number of routes for which you need an ultralarge aircraft are incredibly few,” said Sash Tusa, an analyst with Agency Partners.Boeing’s “Queen of the Skies” debuted in 1970, an audacious bet that transformed travel but almost bankrupted the company. Passenger versions boasted a spiral staircase to a luxurious upstairs lounge. Freighter models featured a hinged nose that flipped open to load everything from cars to oil-drilling gear. The 747 went on to rack up 1,571 orders over the decades -- second among wide-body jets only to Boeing’s 777.The millennial-era A380 could haul as many as 853 travelers and reflected Europe’s lofty aerospace ambition. But by the time it arrived in 2007, airlines were already tilting to smaller planes that burned less fuel.Boeing correctly anticipated the trend with the twin-engine 777 and the 787 Dreamliner. With prodding from Joe Sutter, a famed engineer who’d led the original 747 program, the planemaker decided to develop a relatively inexpensive upgrade of the four-engine plane to steal sales from the A380.The strategy would have been successful, had the 747-8 not been bedeviled by early mismanagement, blowing its budget and deadlines, said Richard Aboulafia, an analyst with Teal Group.The Chicago-based company has lost about $40 million for each 747 since 2016, when it slowed production to a trickle, making just six jets a year, Jefferies analyst Sheila Kahyaoglu estimated. All told, Boeing has recorded $4.2 billion in accounting charges for the 747-8, which has been kept alive as a freighter. The 747 notched its last order as a passenger jet in 2017 -- for Air Force One.Boeing’s jumbo freighters will continue to ply the skies for decades after production stops, said Aboulafia. But he’s dropped the passenger-only A380 from his forecasts.“It’s going to have the shortest lifespan of any type in history,” Aboulafia predicted. “I’d be shocked if there’s still an A380 in service in 2030.”Airbus disagreed. “We will see the A380 continue flying for many years,” the planemaker said by email.But the coronavirus pandemic is hastening the end of the behemoths as people movers. With travel not expected to fully recover until mid-decade, airlines are culling aging jetliners and four-engine jumbos from fleets to limit spending. About 91% of 747s and 97% of A380s are parked, Credit Suisse estimated last month.Air France, Lufthansa, and Qatar Airways are among carriers weighing whether to ground their A380s permanently or are preparing to do so. Airbus has just nine of the planes still be delivered. All but one of them are tagged for Emirates Airline, the largest A380 operator, which is considering whether to scrap its final five on order.The A380 has cost Airbus about 20 billion euros ($23 billion), breaking even or generating profits for only a three-year stretch starting in 2015, Agency Partners estimated. With just 251 aircraft sold over the program’s life, the planemaker never achieved the efficiency that comes with manufacturing at large scale, Tusa said.Boeing, meanwhile, had been preparing for years to wind down the 747 program, and its sales team has been sounding out customer interest in a potential freighter version of the 777X. If such a model goes forward, it would bolster flagging sales of the largest twin-engine aircraft in the company’s lineup.The telling omen that Boeing had written the iconic 747’s final chapter came in financial filings earlier this year. Gone was any indication that the company would continue to “evaluate the viability” of the program, standard phrasing it had previously used.“At a build rate of half an airplane per month, the 747-8 program has more than two years of production ahead of it in order to fulfill our current customer commitments. We will continue to make the right decisions to keep the production line healthy and meet customer needs,” Boeing said for this story.The planemaker has just 15 unfilled orders for the 747 -- all freighters. A dozen of them are headed to United Parcel Service Inc., and the fate of the rest is unclear, part of a dispute with Russia’s Volga-Dnepr Group.Boeing has approached the U.S. courier and other potential customers about taking the three planes, people familiar with the matter said. The planemaker and UPS declined to comment. Volga-Dnepr didn’t respond to requests for comment.UPS in May agreed to take a 747 that Volga had ordered. “Working with Boeing, we saw an opportunity to bring another 747-8 online this year in time for our peak shipping season,” the courier said.Ultimately, Boeing’s decision on the 747 boiled down to resource allocation, said George Dimitroff, who leads valuations at aviation consultant Cirium. Could the assembly line floor space be better used on another airplane, such as the 767, which shares a bay in Boeing’s Everett, Washington, factory?“If you’re building half an airplane a month, it’s probably not your most profitable program,” Dimitroff said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
U.S. technology company TuSimple on Wednesday launched a self-driving freight network with UPS and Berkshire Hathaway Inc supply chain unit McLane that it said should operate nationwide by 2024 and start running some driverless trucks routes by 2021. United Parcel Service Inc and McLane, which serves convenience stores, mass merchants, drug stores and chain restaurants, already run some shorter test routes with TuSimple. Trucking firm US Xpress Enterprises Inc has signed up to start using TuSimple's network soon, she said.
A months-long flood of coronavirus-related e-commerce packages is straining service FedEx Corp, giving rival United Parcel Service Inc an opportunity to steal market share, customers and consultants told Reuters. While every U.S. package carrier is fighting to manage unexpected demand for home deliveries of bicycles, patio furniture, medicine and food, FedEx entered the pandemic in turnaround mode and is grappling with an inflexible business structure that is contributing to service disruptions in California and Michigan. For two Mondays in a row, FedEx told San Bernardino, California-based Pacific Mountain Logistics it would not make scheduled Ground pickups until Thursday, Chief Executive B.J. Patterson said.
The latest consumer confidence reading and FedEx earnings will be in focus for investors on Tuesday.
The Zacks Analyst Blog Highlights: Alphabet, AT&T, Philip Morris International, Amazon, Microsoft, Texas Instruments and United Parcel Service
Rise in e-commerce demand during the current scenario is a positive for UPS. However, the company's significant exposure in China is a headwind.
(Bloomberg) -- When news broke last month that Amazon.com Inc. was interested in buying Zoox Inc., observers assumed the e-commerce giant was looking to automate its delivery fleet. After all, Amazon already invested in an electric truck maker and is a major buyer of everything from planes to diesel vehicles.But in a statement on Friday confirming its acquisition of the autonomous vehicle startup, Amazon touted Zoox for its ride-hailing ambitions. Ride hailing? Amazon?“You say, does it make sense?” said Mike Ramsey, a Gartner vice president who tracks the auto industry. “Well, does it make sense that the package delivery company sells me streaming movies?”Zoox is a corporate investment, not an acquisition to be folded into one of Amazon’s existing businesses, the company says. Aicha Evans, Zoox’s chief executive officer, and Jesse Levinson, co-founder and chief technology officer, will continue to lead the company as a standalone business.“Zoox is working to imagine, invent, and design a world-class autonomous ride-hailing experience,” said Jeff Wilke, the head of Amazon’s worldwide retail business. “We’re excited to help the talented Zoox team to bring their vision to reality in the years ahead.”Amazon’s corporate development team recently told bankers they wanted to look at any autonomous vehicle startup interested in selling, according to a person familiar with the situation, who requested anonymity to discuss a private matter.Amazon shares were little changed Friday morning in New York, while Uber Technologies Inc. fell less than 3% -- in line with the overall market.Terms of the deal, the latest indication of Amazon’s evolution from online bookseller to sprawling conglomerate, were not disclosed. Bloomberg previously reported that Zoox wouldn’t be acquired for less than $1 billion, and on Thursday The Information reported that Amazon was paying more than $1 billion for the startup.Autonomous vehicles have been a target of automakers, Silicon Valley giants and venture capital investors for years. But technical and regulatory hurdles have made getting self-driving cars and trucks on the road a longer slog than boosters had hoped.Founded in 2014, Zoox had outsize ambition and financial backing. It aimed to not only build hardware and software capable of piloting cars, but to design autonomous taxis themselves.The Foster City, California-based startup wanted to build a fully driverless vehicle by this year. However, after a 2018 funding round that valued Zoox at $3.2 billion, the board voted to oust Tim Kentley-Klay as CEO. He criticized the move, saying directors were “optimizing for a little money in hand at the expense of profound progress.”The company last year indicated it was seeking investors and potential strategic partners, a situation made more urgent by the disruption of the coronavirus pandemic, which led to layoffs that Zoox characterized as temporary.In its statement, Amazon highlighted Zoox’s “ground-up vehicle” that “focuses on the ride-hailing customer.”Despite its challenges, Zoox was one among a few independent companies working on credible autonomous vehicle technology, said Ramsey, the Gartner analyst. “Amazon is all of a sudden real close to being its own automaker,” he said.The company could integrate future ride-hailing services into its Prime membership program, Ramsey added. And despite Amazon’s assertion that it was interested in Zoox because of its ambitions in ride-hailing –- already a fiercely a contested market –- Ramsey said Amazon would probably consider using the autonomous technology in delivery vehicles.Bulking up in driverless technology represents an expansion of Amazon’s already sprawling interests in transportation and logistics. The company, which used to rely on delivery partners like United Parcel Service Inc. and FedEx Corp. to move packages from its warehouses to customers, in the last several years has invested heavily in its own capacity to move goods, acquiring planes, vans and long-haul trailers.Seattle-based Amazon has also invested in delivery drones -- though it didn’t meet the goal CEO Jeff Bezos set of having them flying packages to customers by 2018 -- as well as sidewalk-crawling robots and autonomous carts.Last year, Amazon invested along with Silicon Valley venture firm Sequoia Capital in Aurora Innovation Inc., a self-driving startup led by the former heads of Google’s driverless car project and Tesla Inc.’s Autopilot team. The company has also backed Rivian Automotive Inc., the electric pickup and SUV maker, and emerged as its biggest buyer, pledging to acquire 100,000 delivery vans designed in partnership with Amazon.(Updates with Amazon interest in other automonous vehicle startups)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Vanguard Group, the world's largest mutual fund manager, backed shareholder resolutions for shippers United Parcel Service Inc and J.B. Hunt Transport Services Inc and oil driller Ovintiv Inc to limit their climate-warming emissions, according to a top Vanguard executive and a company report being released on Thursday. The details marked the first time the Pennsylvania-based firm has named names in describing such proxy votes at recent shareholder meetings. In an interview with Reuters, Vanguard principal Glenn Booraem said the firm's views on climate and its proxy votes reflect a growing consensus among investors and companies that businesses should account for the risks of operating on a warmer planet.
United Parcel Service (NYSE: UPS) operates a global network of transportation services for businesses and consumers. Here's why UPS is a dividend investor's dream. Although not a Dividend Aristocrat, there are many reasons why UPS is one of the best dividend stocks in the industrial sector.
Here are three top industrial stocks capable of overcoming setbacks from COVID-19, and growing during an economic recovery. United Parcel Service (NYSE: UPS) is one of the largest and most well-known transportation stocks. The company's global supply chain of integrated services by land, sea, and sky also makes UPS one of the top logistics companies.
Stock markets took a big turn for the worse on Thursday, with the tech-heavy Nasdaq falling 5.3%, the Dow tumbling 6.9%, and the S&P 500 falling somewhere in between, closing the day at a 5.9% loss. The carnage was extensive, and even blue chip names like delivery giant United Parcel Service (NYSE: UPS), credit card kingpin Mastercard (NYSE: MA), and Warren Buffett's holding company Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) couldn't escape unscathed. Indeed, as businesses so huge that their fortunes mirror those of the entire economy ("economic bellwethers," as the saying goes), they suffered declines in line with those of the stock market as a whole: UPS down 5.8%, and Mastercard and Berkshire Hathaway down 7% each.
United Parcel Service, Inc. (NYSE:UPS) shareholders (or potential shareholders) will be happy to see that the CEO...
United Parcel Service (UPS) closed the most recent trading day at $103.20, moving -0.43% from the previous trading session.
Amid the uncertainty, there are bargain stocks to be found. If you think United Parcel Service (NYSE: UPS) is just a company that ferries commercial packages from point A to point B, think again. For instance, while most consumers may not even realize it exists, the company operates a unit called UPS Healthcare, which offers crucial services like refrigerating medicines, transporting lab specimens, and handling deliveries related to clinical trials.
General Motors Co <GM.N> is developing an electric van aimed at business users, joining a growing list of carmakers planning EVs for the same segment which includes customers such as Amazon.com Inc <AMZN.O> and United Parcel Service Inc <UPS.N>, five people familiar with the plans told Reuters. GM's plan to develop an electric van has not previously been reported.
(Bloomberg) -- Amazon.com Inc. is expanding its air cargo operations with plans to grow its fleet to more than 80 planes as the online retailer takes advantage of a depressed market for aircraft during the pandemic.The company announced Wednesday that it had leased 12 converted Boeing 767-300 passenger planes from Air Transport Services Group Inc. One was added to Amazon’s existing fleet of 70 aircraft last month, and the rest will be delivered in 2021, the Seattle-based company said in a statement.The deal comes as the global aviation industry grapples with severe travel restrictions to limit the spread of Covid-19. Air Transport shares rose as much as 16% on the news.Amazon, meanwhile, is trying to keep up with a booming e-commerce business that has benefited from a surge in online shopping from people sheltering at home. The company unveiled the air cargo service, now called Amazon Air, in 2016 as it looked to rely less on carriers such as United Parcel Service Inc. and FedEx Corp.A report released last month by the DePaul University’s Chaddick Institute of Metropolitan Development estimated that Amazon Air may grow to 200 planes in the next seven or eight years, creating a cargo service that could rival UPS. “Amazon Air’s robust expansion makes it one of the biggest stories in the air cargo industry in years,” the study’s authors wrote.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Cheap planes and a need for more capacity could be a perfect opportunity for Amazon to snatch up new jets for its delivery services.
(Bloomberg) -- Amazon.com Inc.’s talks to buy driverless vehicle startup Zoox Inc. has analysts speculating the deal could save the e-commerce giant tens of billions a year and put auto, parcel and ride-hailing companies on their heels.Shipping costs are one of Amazon’s largest expenses and may reach $90 billion in the coming years, Morgan Stanley’s internet, auto and transport analysts wrote in a report Wednesday. An autonomous offering could save the company more than $20 billion annually, they estimate.“Autonomous technology is a natural extension of Amazon’s efforts to build its own third party logistics network,” Morgan Stanley’s analysts wrote. They see the company being a “clear” competitor to the likes of Tesla Inc. and General Motors Co. and the potential for Amazon to compete in ride-sharing and food delivery. United Parcel Service Inc. and FedEx Corp. also “will have to respond to keep up.”Other companies in the automotive and chip industries have also held talks with Zoox about a potential investment, according to people familiar with the matter. At least one other business besides Amazon has offered to buy the company, they added. Zoox is unlikely to sell for less than the more than $1 billion that it has raised, according to the people, who asked not to be identified discussing private negotiations.“Zoox has been receiving interest in a strategic transaction from multiple parties and has been working with Qatalyst Partners to evaluate such interest,” the startup said Tuesday. It declined to comment on Amazon’s interest. A spokeswoman for Amazon declined to comment.Zoox had outsize ambition and financial backing. The startup wanted to build a fully driverless car by this year. However, after a 2018 funding round that valued Zoox at $3.2 billion, the startup’s board voted to oust Chief Executive Officer Tim Kentley-Klay. The executive criticized the move, saying the directors were “optimizing for a little money in hand at the expense of profound progress.”Dow Jones reported that Amazon is in advanced talks to buy Zoox for less than the $3.2 billion valuation from 2018.Amazon is willing to spend heavily to automate its e-commerce business. The online retail giant purchased warehouse robot-maker Kiva Systems Inc. in 2012 for $775 million and now has tens of thousands of robots in warehouses around the world.But paying drivers to deliver packages is still one of the biggest costs in the company’s operation. Chief Executive Officer Jeff Bezos announced plans for drone delivery in 2013, though they have yet to materialize at scale. Last year, Amazon revealed an experimental delivery robot called Scout in the Seattle area that rolls on sidewalks like a shopping cart.Last year, Amazon invested along with Silicon Valley venture firm Sequoia Capital in self-driving startup Aurora Innovation Inc., a startup led by the former heads of Google’s driverless car project and Tesla’s Autopilot team. Amazon also backed Rivian Automotive Inc., the electric pickup and SUV maker. Those bets left Morgan Stanley’s auto analyst questioning earlier this month whether Tesla’s rich valuation is warranted given the competitive threats the company faces.“We often hear from investors that Tesla could potentially be the Amazon of transportation,” Adam Jonas, who rates Tesla the equivalent of a hold, wrote in a May 17 report. “But what if Amazon is the Amazon of transportation?”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Amazon.com Inc.’s Prime Air fleet will grow to about 200 planes -- up from 42 now -- in the next seven or eight years, creating an air cargo service that could rival United Parcel Service Inc., according to a study.“At a time when many other airlines are downsizing due to the pandemic, Amazon’s push for faster and cheaper at-home delivery is moving ahead on an ambitious timetable,” said the report issued Friday by DePaul University’s Chaddick Institute of Metropolitan Development. “Amazon Air’s robust expansion makes it one of the biggest stories in the air cargo industry in years.”Amazon unveiled the air cargo service in 2016, prompting speculation that it would ultimately create an overnight delivery network to rival delivery partners UPS and FedEx Corp.Prime Air operates out of smaller regional airports close to its warehouses around the country, helping Amazon quickly move inventory to accommodate one- and two-day delivery. For that reason, some analysts have dismissed Amazon as a potential competitor to UPS and FedEx since it can only offer limited service to a small number of destinations and seems designed to handle Amazon packages.Key to its ability to take on the entrenched players, the report says, is Amazon’s new $1.5 billion facility near Cincinnati that will accommodate up to 100 planes and as many as 200 flights each day. Amazon’s lack of a central hub has kept it from competing in the overnight delivery services offered by UPS and FedEx, which have more planes flying to more destinations.“The massive investment being made in a large hub at Cincinnati/Northern Kentucky International Airport, however, could change everything,” the report says. “This hub appears to be the linchpin to Amazon’s efforts to develop a comprehensive array of domestic delivery services.”A separate report released Monday noted Amazon’s lack of a central hub in concluding it was not a competitive threat to FedEx, which has a hub in Memphis, or UPS, which has one in Louisville. FedEx’s network can offer 9,000 daily flight connections, UPS’ 5,500 and Amazon Air just 363, according to the report from Bernstein.“The viability of a commercial overnight offering from Amazon remains very limited,” Bernstein analyst David Vernon wrote. “Offering a low cost on shipping to a small number of markets every so often will never be a serious competitive threat.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.