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United Parcel ServicesUPSCOMMENTAug 20, 2014Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
Owns UPS instead, and it's good that FedEx that both are focusing on profitability. She prefers UPS for having more density in its ground business and more tied to e-commerce which will remain strong. UPS is exposed to Amazon, which some feel is a risk, but she doesn't anymore, because Amazon can't invest more in infrastructure anymore.
An interesting company because it really is a proxy on the economy. It is about 60% domestically based and tends to be more ground than air versus FedEx (FDX-N). What bothers him a little bit is the multiple. It is trading at 19-19.5 times earnings. It just doesn’t seem to have a lot of upside from that standpoint, and some risk that it might fall back to a normalized trend in the 15-16 range.