United Parcel Service (UPS) stock is comfortably higher in Thursday's session after the international logistics giant beat top- and bottom-line expectations for its third quarter.
In the three months ended September 30, UPS reported a 5.6% year-over-year increase in revenue to $22.2 billion, thanks in part to a 5.8% jump in revenue and a 6.5% rise in average daily volume for its U.S. domestic segment. The company said earnings per share (EPS) were up 12.1% from the year-ago period to $1.76.
"After a challenging 18-month period, our company returned to revenue and profit growth," said UPS CEO Carol Tomé in a statement. "Peak season is nearly upon us, and we are ready to deliver another successful holiday season and continue the progress we demonstrated in the third quarter."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results came in higher than the $22.1 billion in revenue and earnings of $1.63 per share that analysts were anticipating, according to CNBC.
UPS also updated its full-year outlook to reflect its performance in the third quarter and its recently completed disposition of Coyote Logistics. It now anticipates revenue of approximately $91.1 billion for all of 2024, down from its previous forecast for revenue of $93 billion. Operating margin is expected to arrive at 9.6% vs the 9.4% it guided for in its Q2 report.
Is UPS stock a buy, sell or hold?
UPS has vastly underperformed the broader market in 2024. The large-cap stock is down 13% on a total return basis (price change plus dividends) vs the S&P 500's 23% gain.
But Wall Street is betting on a quick turnaround for the industrial stock. According to S&P Global Market Intelligence, the average analyst target price for UPS stock is $145.17, representing implied upside of more than 5% to current levels. Additionally, the consensus recommendation is a Buy.
Bernstein analyst David Vernon is one of those with an Outperform (Buy) rating on UPS. In an October 21 note, Vernon wrote that the company has enough growth potential to warrant the bullish outlook. Additionally, its fat 5% dividend yield "is worth more in a falling rate environment."
Related Content
-
New Hampshire Mobile Home and Condo Property Taxes Inexplicably TripleProperty Tax A city-wide revaluation is causing concern among Rochester locals who argue property taxes are too high.
-
Best Cold Weather Places to RetirePlaces to live Some like it hot; others not so much. Here are the 12 best places to retire if you can't stand the heat.
-
Getting Divorced? Beware of Hidden Tax Traps as You Divide AssetsDividing assets fairly in a divorce means looking beyond their current values and asking whether they'll create tax liabilities — or tax breaks — in the future.
-
All-You-Can-Eat Buffets: Can You Get Kicked Out for Eating Too Much?Don't plan on practicing your competitive-eating skills at an all-you-can-eat buffet. You can definitely get kicked out. Plus, don't be a jerk.
-
5 Tips for Investing in the Trump PresidencyWith Trump back in office, expectations are high the bull market will continue. Here's how investors can prepare.
-
A Social Security Storm Is Gathering: Here's Your Safety PlanIf Social Security reserves are depleted by 2033, as predicted, future benefits could be cut by as much as 21%. Here’s how to weather the impending storm.
-
What a Second Trump Term Means for Investing in Water SafetyA new administration focused on deregulation could change the scope of today's water protections. So, what does that mean for the investors who support them?
-
How to Avoid These 10 Retirement Planning MistakesMany retirement planning mistakes are easily avoidable. Here are 10 to have on your radar so you don't end up running out of money in your golden years.
-
Before the Next Time Markets Sink, Do Your Lifeboat DrillsAn eventual market crash is inevitable. We can't predict when, but preparing for the ups and downs of investing is imperative. Here's what to do.
-
What Are Passive Income Strategies and How Can I Use Them in 2025?An extended period of rising prices has everyone looking for a little more cash to make ends meet.
