Category: UPS News

Warren Buffett’s perseverance and patience can be a breath of fresh air during times of intense market volatility. The objective is simple yet effective: Buy quality businesses at good prices that have long-term value. It’s no wonder that some of Buffett’s largest holdings include industry-leading companies like Apple and Coca-Cola.

United Parcel Service (NYSE:UPS), Waste Management (NYSE:WM), and Air Products and Chemicals (NYSE:APD) are three Warren Buffett-type dividend stocks that could be great buys for investors looking for businesses they can count on for decades to come.

This package delivery giant could positively surprise investors in 2022

Lee Samaha (UPS): Warren Buffett’s Berkshire Hathaway only holds a small position in UPS, just $11 million worth of stock. However, events in 2022 might encourage him to buy more UPS stock throughout the year.

The case for buying the transportation stock rests on the idea that UPS will, at the very least, achieve its 2023 targets. Management laid out the plans on its investor day presentation in July. The targets include increasing revenue from $84.6 billion in 2020 to a range of $98 billion to $102 billion in 2023 and expanding profit margin from 12.7% to 13.7% in 2023. As a result, adjusted operating profit is forecast to increase to between $12.4 billion and $14 billion in 2023 compared to $8.7 billion in 2020.

Founded in Seattle, Washington in 1907 by two teenagers with a $100 loan, the United Parcel Service, Inc. was created with humble beginnings. Jim Casey and Claude Ryan founded the American Messenger Company in a basement in Seattle at a time in history when automobiles and phones were not widely accessible. Instead, the two teenagers carried out a variety of errands on foot, such as prescriptions, letters, and other everyday items. Today, UPS is one of the largest global shipping and logistics companies in the world. As of January 2022, the company’s market capitalization is $183.58 billion. The company reported Q3 2021 revenues of $23.2 billion.

Key Takeaways

• UPS is one of the largest global shipping and logistics companies in the world; as of January 2022, the company’s market capitalization is $183.58 billion.
• Institutional investors make up over 70% of UPS stock ownership.
• The Vanguard Group Inc. owns over 64 million shares of UPS and has a 8.8% stake in the company.

Supply chain experts need a “totally different perspective on inventory management” in the wake of the worldwide COVID-19 pandemic and its aftershocks.

That means moving from “Just-in-Time” inventory distribution programs to “Just-in-Case” worldwide distribution strategies. That would mean more industrial production in or near North America or closer to where customers exist.

That’s the word from UPS CEO Carol Tomé, who discussed issues that will shape 2022 and beyond during the U.S. Chamber of Commerce’s State of American Business video conference on January 11. Issues she covered included economic trends and global competition to policy challenges and opportunities.

“There’s been a few wakeup calls throughout the year,” Tomé said.

UPS has added a new freighter flight between Billund in Denmark and its European air hub in Cologne as it looks to meet growing e-commerce demand.

The new daily B737F flight means that Danish businesses in the Jutland peninsula, including Vejle, Herning and Horsens will benefit from later pick-up cut off times with packages spending less time in transit.

“With collection up to two hours later in place such as Vejle, companies can take advantage of reduced transit time for packages being exported internationally, and potentially increase time in production for goods,” UPS said.