Founded in 1907, United Parcel Service is a private messenger and delivery service company based in Seattle, Washington. Today, UPS is the world's largest package delivery company, a leader in the U.S. less-than-truckload industry, and a premier provider of global supply chain management solutions. Each business day, the company delivers packages for 1.5 million shipping customers to 7.9 million consignees in more than 220 countries and territories. As a global logistics leader, the company creates value for its customers by reducing costs, improving service, and providing highly customizable supply chain control and visibility solutions. Customers are attracted to the company's extensive set of services, which are delivered as promised through its integrated global network of ground, air, and ocean transportation.
UPS exhibits a strong medium-term bullish trend but is severely overbought in the short term, warranting caution for new entries while holding existing positions.
The stock appears fairly valued with limited margin of safety. Current price sits slightly above the mid-point of the calculated fair value range, and while valuation multiples are reasonable for a mature company, there is no compelling discount given recent negative earnings trends.
