United Parcel Service (UPS) Stock

Investors are probably curious about how much longer the bull market will last. Here are the reasons why five contributors from Fool.com strongly believe that Alphabet, Micron Technology, Brookfield Renewable, PepsiCo, and United Parcel Service are great stocks to invest in this month.

The country aims to create a $45 billion digital economy by 2025, which has led to increased IT adoption and investments in technology centers like Ho Chi Minh City. This rise in digitalization has raised the need for dependable UPS solutions in various sectors to maintain a steady power supply. During this time, the data center market has become a key area of growth.

On February 2, 2022, United Parcel Service (UPS) shares reached a record high of $206.37 each. Investors were pleased with the company's consistent growth, strong competitive advantage, and increasing deliveries for online shopping.

If your holiday presents arrived just in time for Christmas, it's likely that at least one was delivered by United Parcel Service (UPS). As the biggest package delivery service in the world, UPS managed an average of 22.3 million packages and documents every day in 2023.

These two undervalued stocks that are currently not popular deserve more attention in 2025.

UPS is set to increase its revenue thanks to the recovery of the U.S. industrial market, a focus on small and medium businesses, and healthcare, along with better service options. Profit margins should rise as costs decrease, automation increases, and operations become more efficient with higher volumes. The stock is currently undervalued, trading below its historical average, and offers a strong dividend yield of 5.16%.

UPS, a top company in small-parcel delivery, uses its size and network to achieve better profits and efficiency, making it an attractive investment option. Recent efforts to automate and consolidate have improved productivity, leading to increased revenue and profits in the third quarter, even though investors are worried about inflation and tariffs. By acquiring Estafeta and investing in healthcare logistics, UPS is enhancing its competitive edge and has strong potential for future revenue and profit growth.

Matt Powers, Managing Partner at Powers Advisory Group, considers United Parcel Service (UPS) one of his top choices for 2025, highlighting its "defensive characteristics and high valuations" as it benefits from several positive trends. UPS will announce its fourth quarter earnings on January 30, 2025. Powers also discusses the overall market opportunities, noting that all major sectors are expected to see earnings growth next year, while emphasizing a shift towards value investments.

United Parcel Service (UPS) finished the latest trading session at $125.75, which represents a slight increase of 0.06% compared to the previous day's closing price.