StocksRunner logo

UPS Stock: Diamond in the Rough? Unveiling Hidden Gems in a Challenging Market

  •  Investment.Sensei
    Investment.Sensei  Investment.Sensei

    Your trusted guide to the stock market. 📈 Unlock the wisdom of wealth creation with expert insights and strategies.


stocks on the run



UPS faced a 10% decline in its stock value in 2023.
Disappointing Wall Street, UPS projects a modest 2% increase to $93 billion in sales compared to 2023.
A marginal 1% rise in local package volume is anticipated.
Despite challenges, UPS CEO, Carol Tomé, remains confident in the company's strategic initiatives.

United Parcel Service (UPS) has encountered both setbacks and opportunities. A closer look at its recent financial performance and strategic moves unveils a company at the crossroads of change and resilience.


Stock Valuation and Outlook


The UPS stock, currently trading at $148, has faced a 7% dip since the company's less-than-optimistic projection for 2024. Wall Street, skeptical but intrigued, observes closely as the company's forward Price-to-Earnings ratio stands at 18, projecting an anticipated earnings per share of $8.28 in 2024. Analysts foresee a gradual recovery with an expected stock price of $10 per share in the next year and $11 per share in 2026.


With a current dividend yield of 4.4%, UPS offers the highest among the Dow Jones Transportation companies. CEO Carol Tomé, unfazed by market concerns, emphasizes the company's commitment to shareholders, evident in the quarterly dividend increase to $1.63 per share in early 2024 and a significant $2 billion stock buyback in the previous year.


Operational Strategies


Amid challenges, UPS has leveraged automation to enhance profitability and mitigate rising expenses associated with last year's labor agreement. The company's focus on streamlining operations resulted in a 32% decrease in per-share earnings.


Despite facing criticism, the recent labor agreement, which covers 70% of the company's 500,000 employees, adds a dynamic dimension. With hourly wage increases and promises of significant savings through workforce reductions and facility consolidations, UPS aims to cut costs by $1 billion in 2024.


CEO Carol Tomé, known for her profit-oriented approach, assumed office in 2020, steering the company in a new direction. Unlike her predecessors, Tomé's financial background at Home Depot has influenced her emphasis on profitability over sheer volume. Her mantra, "better, not bigger," signals a departure from the company's previous growth-focused strategy.


Wall Street's reservations stem from UPS's conservative revenue projection for 2024, expecting only a 2% increase. Tomé remains steadfast, assuring investors of a strategic plan focused on reducing costs, enhancing profit margins, and pushing the stock price higher.


The recent labor agreement between UPS and its workforce has drawn attention, with full and part-time employees receiving an immediate $2.75 per hour raise. Over the contract's five-year term, the hourly wage is expected to reach $7.5, providing job security and wage growth. Notably, UPS drivers, among the highest-paid, are projected to earn $49 per hour by the contract's end in 2028.


The consolidated bargaining power of the UPS workforce contributes to higher labor costs compared to non-unionized competitors like FedEx. However, UPS drivers, recognized for their productivity and positive public image, hold significant sway. Moreover, many UPS employees, active and retired, possess Class A shares, granting them substantial influence over company decisions.


Investment Considerations


In summary, UPS remains a dominant force in the shipping industry, with ample opportunities to trim costs and increase profit margins. As the management continues to explore strategic options, investors should watch for potential buyout scenarios, especially as Warren Buffett expresses interest in substantial acquisitions. UPS's resilience, commitment to dividends, and strategic initiatives make it a stock worth monitoring in 2024.



UPS Stock Analysis

Last Price


Total Score

StocksRunner Raring Score
Strong Sell
Strong Buy




 Investors confidence is positive


 Upgraded on attractively valued


 Trading below its fair value


 Pays a reliable dividend


Risk Analysis


Risk Analysis

 Earnings are forecast to decrease


Technical Indicators


Technical Indicators

 MACD crosses above signal line


Risk Level

Risk Level

UPS has Low Risk Level. Click here to check what is your level of risk


Unlock insights and stay ahead in the stock market game. Click Here For More UPS in-depth stock analysis.


stocks on the run


Unlock Exclusive Stock Insights!

Join for daily market updates, expert analyses, and actionable insights.

Signup now for FREE and stay ahead of the market curve!

Why Join?

Find out what 10,000+ subscribers already know.

Real-time insights for informed decisions.

Limited slots available, SignUp Now!

Login to Stocksrunner

Please note that the article should not be considered as investment advice or marketing, and it does not take into account the personal data and requirements of any individual. It is not a substitute for the reader's own judgment, and it should not be considered as advice or recommendation for buying or selling any securities or financial products.

StocksRunner logo

Get all the pieces of the puzzle on important data activity before the major news sources break the story and find out what happening right now and what could happen in the future



StocksRunner on Facebook StocksRunner on Twitter StocksRunner on YouTube StocksRunner on stocktwits StocksRunner Rss

Receive our Daily Alerts

Discover the wisdom that over 10,000+ subscribers love! Join us for unique insights and keep ahead in the stock world. Just drop your email to get daily updates!

Our Services

Real-time stock market updates

Expert stock analysis

Investment strategies

Top stock recommendations

Trading signals and opportunities

About StocksRunner

Log In

Sign Up

Contact Us

Terms of use

Privacy Policy


Disclaimer: Past performance, whether explicitly stated or inferred from historical testing of methodologies, does not serve as an assurance of future outcomes or achievements. The displayed outcomes pertain to a strategy not historically accessible to investors and do not epitomize the returns achieved by any specific investor. The Readiness Indicators, Sentiment Indicators, and aggregate score derive from a model retrospectively applied to historical data. This model is founded on assumptions intrinsic to its construct, which may remain unverifiable and expose stakeholders to potential losses. Engaging in active trading may not be advisable for individuals possessing limited financial resources, restricted investment or trading acumen, or a conservative risk profile. Please be advised that your invested capital is subject to inherent risks.

Kindly be informed that StocksRunner and its affiliated entities ("TS") neither extend nor endorse any proposition, invitation, or recommendation concerning the acquisition or divestiture of securities, derivatives, prospective products, or any form of investment guidance or strategy.

The information presented herein serves exclusively for illustrative purposes. It is imperative not to predicate investment decisions solely on the content of this platform. Prior to making any financial commitments, it is prudent to evaluate its relevance to your specific circumstances and consult with professionals specializing in financial, tax, and legal domains.

StocksRunner logo


Get the pulse of the market

StocksRunner logo

Find out what happening right now and get all the pieces of the puzzle on important data activity before the major news sources break the story and see what are the trends


StocksRunner on Facebook StocksRunner on Twitter StocksRunner on YouTube StocksRunner on stocktwits StocksRunner Rss


Receive our Daily Alerts

Unlock the knowledge that 10,000+ subscribers already cherish. Join for exclusive insights and stay ahead in the stock game! Enter your email to receive daily alerts

Market trends

In-depth stock analysis

Informed investment decisions

Stock market insights

Stock trading tips

Stocks analysis

Stocks trends

Stocks performance

Stocks analysis

Investment strategies

Stock strategies

Trading strategies

StocksRunner updates

StocksRunner ideas

Financial Reports


Disclaimer: The Score performance whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The Readiness Indicators, Sentiment Indicators and total score are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. Active trading is generally not appropriate for someone of limited resources, limited invesment or trading experience, or low-risk tolerance. Your capital may be at risk.

Please note that no offer or solicitation to buy or sell securities, securities derivatives of future products of any kind, or any type of trading or invesment advise, recommendation or strategy, is made, given or endorsed by StocksRunner including any of their affiliates ("TS").

This information is provided for illustrative purposes only. You should not rely on any advice and/or information contained in this website and before making any investment decision. we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.