Name of opportunity: 👀
United Parcel Service, Inc.
Potentially undervalued… but not for long?: ⬆️
For context, UPS stock has recently dropped after the company’s Q2 earnings disappointed investors a month ago. It also lowered its 2024 full-year guidance, after doing the same thing last year.
Some analysts believe that United Parcel Service is currently undervalued. The stock has dropped by 16.49% over the past 6 months but its target price, which analysts think it could reach, is much higher, as we will go on to discuss in more detail…
UPS also offers a dividend yield of 5.04%, paying $6.5 annually in dividends. If you invested $1000, you would receive $50.40 in dividends (based on the last 12 months). So if you’re an income investor who loves scooping up dividend stocks, this could be a great addition to your portfolio - especially at its current low price.
How hot is this investment opportunity? 🔥🔥🔥
Analysts predict the price of United Parcel Service, Inc. will increase from $128.58 to $160.59 in the next 12 months. If you invested $1000, you might profit $246.05.
One of the reasons why analysts think UPS might pick up again is that the Q2 report showed that delivery volumes are improving. Also, the company’s management has shared a three-year plan that has got investors feeling excited again about what UPS can achieve.
For instance, UPS plans to target the healthcare sector, after having grown its revenue in this area from $5.1 billion in 2016 to $10 billion in 2023. Delivery for the healthcare sector could be a very profitable niche, with specialist requirements such as transporting medicine, samples and equipment safely at appropriate temperatures - known as cold chain solutions. UPS aims to reach a revenue of $20 billion in this sector by 2026.
Delivery!: 📦
United Parcel Service, Inc. is a package delivery company and a provider of global supply chain management solutions. This American multinational company is the world’s largest courier company by revenue. Its segments include U.S. Domestic Package and International Package.
Which neme?: 🔍
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