UPS Stock: Buy, Sell, or Hold?
One of the most intriguing investment propositions in the industrial sector, UPS (NYSE: UPS), is a battleground stock for bulls and bears. Although the company has disappointed investors in recent years, it's making underlying progress in its medium-term strategy, and a turnaround could be under way in 2025. Here's what you need to know before buying the stock.It's been a difficult couple of years for UPS. For two years running, management has overestimated the strength of the U.S. small package delivery market. In addition, UPS had a protracted and costly labor dispute in 2023. Customers switched to other networks in fear of strike action, and costs associated with the ultimately agreed-upon new contract hit UPS's margins.Moreover, investors have reason to doubt management. Last year, the company held an investor and analyst day, during which management reiterated its full-year 2024 guidance and laid out its plans for the next three years.Continue reading
One of the most intriguing investment propositions in the industrial sector, UPS (NYSE: UPS), is a battleground stock for bulls and bears. Although the company has disappointed investors in recent years, it's making underlying progress in its medium-term strategy, and a turnaround could be under way in 2025. Here's what you need to know before buying the stock.
It's been a difficult couple of years for UPS. For two years running, management has overestimated the strength of the U.S. small package delivery market. In addition, UPS had a protracted and costly labor dispute in 2023. Customers switched to other networks in fear of strike action, and costs associated with the ultimately agreed-upon new contract hit UPS's margins.
Moreover, investors have reason to doubt management. Last year, the company held an investor and analyst day, during which management reiterated its full-year 2024 guidance and laid out its plans for the next three years.
