#4 - United Parcel Service (NYSE:UPS)
Moving outside the chip sector, the first company you may want to consider is United Parcel Service Inc. (NYSE: UPS). The stock is down 17.8% in 2024, but the story with UPS is straightforward. The company’s revenue and, more significantly, its earnings have been under pressure as higher interest rates have softened demand for package delivery.
However, the company reported a 12% year-over-year (YoY) earnings beat in its third quarter 2024. Investors will want to see that trend continue and hear what the company believes about future demand and when they may expect margins to recover.
That said, your investment decision on UPS stock will come down to your feelings on interest rates. If the Federal Reserve decides to slow down its rate cut campaign, the upside in UPS stock may be limited. However, even in that scenario, as long as rates don’t move higher, the company’s dividend which has a juicy 5.07% yield looks safe.
About United Parcel Service
United Parcel Service, Inc, a package delivery company, provides transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery of express letters, documents, small packages, and palletized freight through air and ground services in the United States.
Read More - Current Price
- $123.38
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 15 Buy Ratings, 6 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $151.10 (22.5% Upside)
