Why UPS Stock Can Rise 30%

Discussion in 'The Latest UPS Headlines' started by cheryl, Jul 5, 2018.

  1. cheryl

    cheryl I started this. Staff Member

    Why UPS Stock Can Rise 30% - Investopedia

    Having underperformed the broader market and rival Fedex Corp. this year, things are beginning to look up for United Parcel Service Inc. By up, we mean the stock could rise 30% based on the $137 price target given by Bernstein analyst David Vernon, who is optimistic about the company’s recent agreement with the Teamsters labor union that he thinks will contribute to slower wage growth. While Vernon also likes FedEx, he warns that investor concerns over protectionism and tariffs are not without merit, according to Barron’s.

    Turning Things Around

    In recent negotiations with the Teamsters union, UPS secured a deal that would limit the number of hybrid drivers (i.e. drivers who also perform other duties) to 25% of the total amount of full-time carriers. That number is better than Vernon expected, allowing UPS to hire employees with more flexible roles and consequently gives the company greater flexibility in its cost structure. The deal also includes reductions to overtime and the cost of weekend operations, additional positive signs.
     
  2. silenze

    silenze Lunch is the best part of the day

    Ups is holding out on us. I want a 30% raise
     
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  3. bbsam

    bbsam Moderator Staff Member

    Your raise is going to the investor.
     
  4. Jackburton

    Jackburton Gone Fish'n

    I have just as many reasons why stock can drop 30%