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18/10/2021

UPS Stock

UPS or United Parcel Service is an American company that focuses on the transportation of goods on an international scale. The health crisis has caused some upheaval in the various services it offers. However, UPS is committed to applying strategies to strengthen its value in the stock market.

Is it a good idea to invest in UPS? Here’s some key information that will help you make the right choice.

History

In 1907, UPS was known as the American Messenger Company. Its founder, Jim Casey, entered into a partnership with Evert McCabe, and from there United Parcel Service at a time when parcel delivery was still relatively unknown.

UPS began to broaden its activities by expanding into the major European capitals. Since its inception, the number of flights and package shipments via ground routes has steadily increased. In 2007, the company was operating about 2,000 flights a day. As it has evolved, UPS has purchased other companies to expand its business. Important acquisitions include Lynx Express in 2005 and Coyote Logistics in 2015.

The use of the hub system allows UPS to facilitate the shipment of packages around the world. It is a common technique for sorting and shipping goods. As a result, the company has operations in more than 200 countries worldwide.

UPS Activities

UPS is a large postal company. Its activities are divided into several areas :

  • Express parcel and courier transportation in the United States, including letters, large packages, and small packages.
  • Express and courier parcel transport worldwide. A service that generally complies with the regulations of the countries of sending or destination.
  • Conventional transportation and logistics services.

In addition to the above-mentioned core activities, UPS also provides a number of other essential services, which include :

  • Monitoring and auditing deployed transportation assets, before, during, and after travel.
  • Real-time tracking of packages and letters on Ups.com
  • Free messaging system to inform customers about shipping and drop-off of their packages.

Through all its operations, UPS was able to generate $64,779 billion in revenue in 2019. It increased its revenue from the previous two years : 59,991 billion in 2018 and 62,523 billion in 2019.

Listing of UPS on the stock exchange

The postal company UPS went public in 1999. The UPS IPO was one of the largest in Wall Street history. UPS stock was trading at $50 at the time of the IPO. Today, its price has more than quadrupled to $211, 870. This shows that UPS has been able to grow constantly and remain profitable for its investors. 

Currently, UPS's P/E is 26.08, which indicates that the stock is a bit expensive. This can be explained by the current economic situation which is leaning in favor of the development of this company. Investors believe that UPS's business will become more successful and bring in more profits.

UPS Trading Information

  • ISIN Code : US9113121068
  • Market : NYSE New York
  • IPO stock price : $50
  • Share price as of May 28, 2021 : $214.99

UPS Stock Price Influencers

One of the biggest advantages of UPS is that it has a large fleet of compressed natural gas vehicles. The company puts thousands of vehicles and containers on the road every day around the world.

Transportation is a necessity for companies involved in trade and logistics. UPS pays great attention to international partnerships. This strategy allows the company to broaden its horizons to further increase its turnover.

UPS has made huge investments to further improve its services, opting for greater automation of its packaging processes and increasing the number of aircraft in its fleet.

Technological and digital developments drive UPS's business, with online activities growing steadily. The company is a leader in the transportation industry. With a large and satisfied customer base, UPS has a bright future ahead of it. Today, nothing seems to threaten the growing success of this delivery giant. 

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