United Parcel Service Inc Class B
UPS: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $379.00 | Dbqt | Gtgnpdypl |
Continued Package Volume Normalization Weighing More Heavily on UPS' Margins
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Business Strategy and Outlook
UPS is the giant among global small-parcel delivery companies, and it’s one of three commercial providers that dominate the landscape; FedEx and UPS are the major U.S. incumbents, while DHL Express leads in Europe. UPS has also raised its exposure to the asset-light third-party freight brokerage market, especially with its 2016 acquisition of truckload broker Coyote Logistics. The firm divested its less-than-truckload division, UPS Freight, in the second quarter of 2021 as part of new CEO Carol Tomé's "better, not bigger" framework.