From Nasdaq: 2025-02-08 18:05:00

The stock of United Parcel Service (UPS) has dropped 17.5% since reporting Q4 and full-year 2024 results. The dividend stock is at its lowest level in over four years, down over 50% from its all-time high. Despite poor results and weak guidance, UPS is seen as a buying opportunity due to efforts to focus on profitable segments like healthcare. UPS forecasts $89 billion in revenue and 10.8% operating margins for 2025. The company is aiming to double healthcare revenue by 2026. With a 5.9% dividend yield, UPS remains a high-yield value stock for patient investors.

In summary, UPS is facing challenges with its stock down significantly, but the company is working to turn things around by focusing on profitable segments like healthcare. Despite uncertainties, the stock’s current low valuation and high dividend yield make it an attractive option for patient investors. Management is committed to returning capital to investors through dividends and buybacks, providing some stability amidst the business transformation. While the future remains uncertain, UPS is positioning itself for growth in key areas like healthcare.



Read more at Nasdaq: Down 50% With a 5.9% Dividend Yield, Here’s Why This Dirt Cheap Value Stock Is Worth Buying in February