Is United Parcel Service Stock a Buy? Expert Analysis and Insights
Is the Worst Over for UPS?
A closely watched publication is calling a bottom in UPS shares. United Parcel Service (NYSE: UPS) shares have lost one-third of their value since early 2022, weighed down by slowing freight volumes and headlines about a massive raise for unionized workers. But an influential Wall Street publication said over the weekend that it is time to buy UPS shares, and investors are reacting.
Why Buy UPS Shares Now?
Barron's believes now is the time to buy. The closely watched Wall Street publication said over the weekend that UPS's efforts to cut costs, increase automation, and lift volumes should help offset the higher expenses from the labor deal, and can lead to higher margins over time. Stocks that receive positive mentions in the publication tend to see upside in Monday trading, which is what's happening to UPS today.
Investment Considerations
- UPS expects profitability to increase by 2026 as efficiency efforts pay off
- Long-term growth potential amidst global commerce role
- Caution advised for investors expecting immediate surge
- Stock priced at 18 times projected 2024 earnings
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.