With a Yield Near a 10-Year High, Is UPS Stock a Buy?

[cheryl]

With a Yield Near a 10-Year High, Is UPS Stock a Buy? - Motley Fool

UPS' stock is getting killed. Is the pain justified or is this big drop a huge buying opportunity?

The shares of package delivery giant United Parcel Service have fallen around 25% from recent highs. That massive decline has pushed its yield up to 4%, which is toward the high end of the company's historical yield range. Is this a buying opportunity for income investors or is something really wrong at UPS today?

The problems...
UPS isn't exactly hitting on all cylinders right now. In fact, first-quarter earnings were a little disappointing, missing analyst estimates. And while management has stuck to its full-year guidance, Wall Street isn't exactly confident that the company can live up to those self-imposed expectations. The problems here, however, are bigger than a single quarter.

 

[SameRightsForAll]

I'm afraid that the company won't be able to reverse its trend of making dumb decisions. If you think something magical is going to happen now that the delivery gig economy is booming and Amazon is getting into logistics then you're kidding yourself. However, with the 5% employee discount you should be buying the crap out of stock through payroll until you retire.

 

[IVE GOTTA PACKAGE 4U]

I'm afraid that the company won't be able to reverse its trend of making dumb decisions. If you think something magical is going to happen now that the delivery gig economy is booming and Amazon is getting into logistics then you're kidding yourself. However, with the 5% employee discount you should be buying the crap out of stock through payroll until you retire.

Buy some but not too much.