“Is UPS Stock an Undervalued Dividend Stock That Passive Income Investors Should Buy Right Now?”
UPS is a hold; no urgency to buy due to persistent headwinds and fair-to-slightly-undervalued but not cheap valuation.
After several quarters of persistent headwinds, UPS gave investors a few things to be excited about. First of all, they reported a 7.6% year-over-year revenue growth rate.
That's impressive amid a significant macroeconomic headwind backdrop that's decreasing the number of units shipped and increasing the company's costs. Speaking of cost, the company is increasing automation. 68% of the company's warehouses or products flowing through the company's warehouses are now going through automated facilities, which the management team also highlighted is 28% lower in terms of the cost per piece compared to non-automated facilities.