UPS is a potential long-term buy and hold; it may be undervalued based on historical forward PE and offers a steady >6% dividend yield.
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So the first company is the United Parcel Service, ticker symbol UPS. So UPS is a package shipping company, kind of like FedEx. And when we look at their dividend history, well, we can see that their dividends been fairly steady for a while.
It's a quarterly dividend. They have a dividend yield of a bit over 6% right now.
And the stock over the past year, when we jump over and look at a price chart, their stock over the past year is up a bit, up about 17 18%. So, the stock's done decent over the past year,
but I think that one of the interesting parts here is the company has gone through a lot of changes recently, trying to cut cost. They, you know, laid off some workers. They're trying to, you know, improve their margins.
They expanded, they pushed a lot into some international expansion, trying to push more into the healthcare business, things like that. Trying to diversify a bit away from the small package shipping business, which I think is necessary because there's a lot of competition in their business. since there's a lot of competition in the industry.
But I do believe that this is an industry that will remain necessary for a long long time and UPS is in an interesting position in that it has a decent network already set up. And if they can improve things enough, well, this could be an interesting long-term buy and hold that perhaps could be trading at a value.
In fact, when we look at their forward PE ratio, this is a chart of their forward PE ratio over the past decade. And right now, relative to its own history, it looks like it could be undervalued right now.
So, at first glance, this looks like this could be an interesting one to analyze.
What this channel has said about $UPS
Learn to Invest - Investors Grow has only this one call on this stock.