United Parcel Service is the world’s largest express carrier and package delivery company, significantly bigger than archrival FedEx. UPS stock plunged due to impact from coronavirus, but then skyrocketed amid the e-commerce boom. So is UPS stock a good buy right now? Read on to find out.
Founded back in 1907, the shipping giant offers customers a wide range of supply-chain services, including freight forwarding, fulfillment, customs brokerage, returns and even financial transactions.
Size is key. UPS delivers millions of packages across the globe each day. In 2020 it delivered 24.7 million packages per day on average, up from 21.9 million the previous year. This translates to 6.3 billion packages through the year. UPS also has been investing heavily to adapt to the changing market in the face of the e-commerce revolution.
But while the e-commerce boom has boosted package shipments, UPS earnings growth is not ideal. In addition, the loss of some Amazon.com business and the weak global economy also pose notable risks.