UPS Intrinsic Value Calculator – UPS Stock a Buy Despite Potential Teamsters Showdown?

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The question of whether United Parcel Service ($NYSE:UPS) (UPS) stock is a good buy despite the potential difficulty of a Teamsters showdown this summer is a complex one. UPS stock has been doing well in recent years, outperforming the broader market and most competitors. The company’s share price has nearly doubled over the last five years with the company continuing to grow its revenues and profits.

However, this summer could present a challenge for the company as it tries to negotiate a new labor agreement with the Teamsters Union. There is a risk that negotiations could break down, leading to a Teamsters showdown that could cause disruptions to UPS’s operations. Despite this looming risk, many analysts still recommend UPS stock as a good buy. They point to the company’s strong financial performance and its ability to navigate labor disputes in the past. They also emphasize the company’s size and influence in the shipping industry, which gives it an advantage in any potential negotiations. Ultimately, UPS stock may still be a good buy despite the potential difficulty of a Teamsters showdown this summer. While there is some risk, the company’s size and financial performance make it likely that it will be able to negotiate successfully and continue to enjoy strong returns for investors.

Price History

Despite Tuesday’s decline, many investors remain optimistic about the performance of UNITED PARCEL SERVICE (UPS) stock. The company opened on Tuesday at $167.5 and closed at $166.6, down 1.3% from the previous closing price of $168.8. This decline was likely due to speculation over the potential showdown between UPS and the Teamsters Union, which represents its workers. Nevertheless, many analysts believe that this potential showdown will have limited impact on the company’s stock price.

They cite UPS’s strong financial position and its track record of effective labor relations as reasons to think that the company will be able to address the Teamsters’ grievances without too much disruption. Overall, while the potential Teamsters showdown could cause some short-term volatility in the stock price, most investors remain bullish on UPS’s long-term prospects. As such, many view the current dip in price as a buying opportunity, and continue to see UPS stock as a good investment despite the risks involved. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for UPS. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for UPS. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for UPS. More…

Key Ratios Snapshot

Some of the financial key ratios for UPS are shown below. More…

Analysis – UPS Intrinsic Value Calculator

At GoodWhale, we have conducted an analysis of UNITED PARCEL SERVICE’s financials. After our proprietary Valuation Line was applied, we determined that the intrinsic value of UNITED PARCEL SERVICE share is around $192.0. Currently, the share price is traded at $166.6, making it a fair price that is undervalued by 13.2%. More…

Peers

There is intense competition between United Parcel Service Inc and its competitors: Deutsche Post AG, Expeditors International of Washington Inc, Kuehne + Nagel International AG. All these companies are striving to get a larger share of the global market for logistics and transportation services.

– Deutsche Post AG ($OTCPK:DPSTF)

Deutsche Post AG, together with its subsidiaries, provides postal and logistics services in Germany and internationally. The company operates through three segments: Post, Express, and Parcel (PEPS); eCommerce Parcel; and Supply Chain. The Post segment offers various postal services, including the delivery of letters and parcels, as well as direct marketing products. The Express segment provides international express mail, national express mail, and express courier services. The Parcel (PEPS) segment offers parcel services. The eCommerce Parcel segment engages in the provision of parcel services for business customers and private individuals. The Supply Chain segment offers a range of logistics solutions, including air and ocean freight, warehousing, and contract logistics. Deutsche Post AG was founded in 1995 and is headquartered in Bonn, Germany.

– Expeditors International of Washington Inc ($NASDAQ:EXPD)

Expeditors International of Washington Inc is a Fortune 500 company that provides global logistics services. It is headquartered in Seattle, Washington and has over 300 offices in 70 countries. The company is a leading provider of transportation and logistics services, and its core business is facilitating the movement of goods and people around the world. Expeditors has a diversified business model that includes airfreight, ocean freight, customs brokerage, and warehousing and distribution. The company’s global logistics network includes a comprehensive range of transportation and distribution services that allow it to provide end-to-end solutions for its customers. Expeditors is a publicly traded company listed on the NASDAQ stock exchange under the ticker symbol EXPD.

– Kuehne + Nagel International AG ($OTCPK:KHNGF)

Kuehne + Nagel International AG, together with its subsidiaries, provides logistics and transportation services worldwide. The company operates through four segments: Sea Logistics, Air Logistics, Land Logistics, and Overland Logistics. It offers transport and storage solutions for various goods, including chemicals and oil, fashion, food, and beverages, general cargo, healthcare, high-tech products, automotive parts, and others. The company was founded in 1890 and is headquartered in Schindellegi, Switzerland.

Summary

United Parcel Service (UPS) is facing a showdown with the Teamsters labor union, making investors question its future prospects. Analysts recommend doing research on the company and its stock before making any decisions. Potential investors should take into account long-term trends such as the growth of e-commerce, the potential for increased labor costs, and the rising competition in the parcel delivery sector.

Additionally, they should pay close attention to the company’s financials and management. Investors should consider whether UPS’s current price represents a good value, as well as staying informed of upcoming negotiations with the Teamsters to gauge any potential shifts in market sentiment. Overall, it is important for investors to carefully consider all factors before deciding whether to buy or sell shares in UPS.