With the majority of Americans sheltering at home, the delivery business is Hot, Red Hot!
United Parcel Service Inc. (NYSE:UPS) provides logistics, freight ,air, sea, ground, rail, forwarding, international trade management and customs brokerage.
The company has about 390-K employees in the US and nearly 500-K worldwide, it serve more than 220 countries and territories. It operates a fleet of 237 UPS aircraft, as well as a ground fleet of more than 110,000 Brown delivery trucks. More than 46% of its volume is B2C, it delivers more than 18-M packages per day globally.
UPS has said this year that it aims to more than 2X weekend deliveries in Y 2020 as package carriers look for ways to satisfy the always-on demands of e-Commerce customers, including rising rival Amazon.com.
UPS is vying also to attract more retailers that want to keep pace with Amazon shipping speeds, while holding on to its Amazon business, which accounts for almost 20% of company volume.
Shareholders receive a handsome 4.04% dividend. BofA Securities has set a 109 price target, which is above the 107.78 consensus target. UPS stock was last seen trading at 101.18/share.
The Key support and resistance is at 98.00 and 119.68 respectively, our Key indicators have turned Very Bullish in here and a our outlook for the stock is 124.30 on a break above 103.
Adding a position in UPS, look wise and prudent if you can manage the risk there is a 25% Northside yet this year.
Have a healthy weekend, Keep the Faith!