Category: UPS News

With the victory of a coalition of reformers in the Teamsters, the union has enormous potential to organize Amazon, rebuild strength at shop floors throughout North America, and perhaps even go on strike against UPS.

Big changes are afoot in one of the largest labor unions in North America. Last November, following a three-year campaign, the Teamsters United (TU) slate led by Sean O’Brien defeated the Teamster Power (TP) slate led by Steve Vairma by a two-to-one margin in the election to determine the top leadership of the 1.3-million-member International Brotherhood of Teamsters (IBT).

Vairma, head of Denver Local 455, had received the endorsement of outgoing incumbent James P. Hoffa, who did not seek reelection after twenty-three years in office. O’Brien, head of Boston Local 25, had the backing of Teamsters for a Democratic Union (TDU), the rank-and-file reform movement in the Teamsters.

Although the election was not widely reported, even in a year when workers and their unions managed to make some headlines, it could be one of the most consequential events in recent years for shaping the future of the US labor movement. With members located throughout the transportation and logistics sector, Teamsters can exert power all along the supply chain.

Key Points

• UPS just delivered another monster year.
• Pricing power gives UPS the ability to perform during times of high inflation.
• UPS stock isn’t expensive even though it’s at its all-time high.

Sometimes, the best market-beating businesses aren’t flashy paradigm-shifting growth companies. Instead, they are easy-to-understand businesses that are really good at what they do. Take United Parcel Service (NYSE:UPS) for example.

UPS thrived during the height of the pandemic as more people ordered packages to their doors instead of shopping in person. It sustained that momentum in 2021 as economies reopened around the world, leaning into demand for package deliveries in the healthcare industry and fueling the ongoing growth of e-commerce. Here are three reasons why UPS continues to do well and why its stock is a great buy even at its all-time high.

By now, most investors will know that UPS (NYSE:UPS) reported a bumper set of fourth-quarter earnings, and the stock soared higher in response. In a nutshell, the company is on track to meet its 2023 targets a year early. However, the party isn’t over by a long shot. The trend in its numbers and operational trends suggest there could be plenty more upside to the stock to come. Here’s why.

UPS is ahead of its targets

It’s a good idea to start by recapping the 2023 targets laid out on the investor day in June 2020.

First, not only is UPS set to hit its 2023 targets a year early, it’s driving toward the high end of them and above. The 2022 revenue and overall adjusted operating margin guidance are at the high end of the 2023 targets. Meanwhile, the all-important U.S. domestic operating margin guidance for 2022 is above the midrange of the 2023 target.

Finally, the 2021-2023 free cash flow (FCF) target of $24 billion to $27 billion looks well within reach, given the $10.9 billion generated in 2021 and the $9 billion guidance for 2022. If UPS hits FCF guidance in 2022, it will need just $7.1 billion in 2023 to hit the high end of its 2021-2023 target. That looks achievable.

A doorbell camera captured this heartwarming footage of a UPS driver stopping to play basketball with a kid.

The video was posted by Ashley Edge to TikTok. She said: “THANK YOU!! Not sure what this UPS driver’s name is, but you taking 90 seconds out of your super busy schedule meant the world to my son!”

Dive Brief:

• Parcel carrier capacity is expected to remain tight in 2022, UPS CEO Carol Tomé said on the company’s earnings call Tuesday, which would allow carriers to maintain their pricing power as shippers continue to fight for limited space in delivery networks.
• “The small package market is expected to grow about 5% in 2022,” Tomé said. “There is additional capacity being added, but not enough. That’s going to create surplus. So the environment supports firm pricing as we look to 2022.”
• To better balance sortation capacity with delivery capacity in its own network, UPS plans to launch 30 delivery centers and two “automated hub projects” this year, CFO Brian Newman said. The company is also enhancing its weekend service to further free up space.