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Is it Still Worthy to Invest in United Parcel Service (UPS)?

·3 min read

ClearBridge Investments, an investment management firm, published its “Large Cap Growth ESG Strategy” second quarter 2022 investor letter – a copy of which can be downloaded here. The ClearBridge Dividend Strategy outperformed its S&P 500 Index benchmark during the second quarter. On an absolute basis, the Strategy had gains in one of the 11 sectors in which it was invested for the quarter: the health care sector. The IT, financials and materials sectors, meanwhile, were the main detractors. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, ClearBridge Large Cap Growth ESG Strategy mentioned United Parcel Service, Inc. (NYSE:UPS) and explained its insights for the company. Founded in 1987, United Parcel Service, Inc. (NYSE:UPS) is an Atlanta, Georgia-based multinational shipping & receiving and supply chain management company with a $170.9 billion market capitalization. United Parcel Service, Inc. (NYSE:UPS) delivered a -8.20% return since the beginning of the year, while its 12-month returns are up by 2.16%. The stock closed at $196.76 per share on August 05, 2022.

Here is what ClearBridge Large Cap Growth ESG Strategy has to say about United Parcel Service, Inc. (NYSE:UPS) in its Q2 2022 investor letter: 

"Environmental impact is a major issue for the transportation industry, including logistics and freight companies such as portfolio holding United Parcel Service (NYSE:UPS). Recent engagements with the company have given us a better understanding of the challenges in lowering emissions in transport as well as where innovations may be coming from in the years ahead. In ESG-focused engagements in March and May 2022, we discussed UPS’s path to net-zero using science-based targets.

Though it has a 2050 net-zero goal in line with SBTi, UPS has issues complying with SBTi standards because aviation constitutes 60% of UPS’s Scope 1 and 2 emissions. This is an area over which UPS has little control, however, and the maximum exclusion for a source of emissions for SBTi approval is 5%. UPS has committed to a 2050 carbon neutral goal, which is the same as the SBTi’s goal, although UPS takes a different view of the first 15 years of the path, finding existing technology unable to warrant as aggressive a path as SBTi’s..." (Click here to see the full text)

26 Biggest Malls in the World in 2017
26 Biggest Malls in the World in 2017

Copyright: lightpoet / 123RF Stock Photo

Our calculations show that United Parcel Service, Inc. (NYSE:UPS) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. United Parcel Service, Inc. (NYSE:UPS) was in 50 hedge fund portfolios at the end of the second quarter of 2022, compared to 55 funds in the previous quarter. United Parcel Service, Inc. (NYSE:UPS) delivered a 9.36% return in the past 3 months.

In April 2022 we also shared another hedge fund’s views on United Parcel Service, Inc. (NYSE:UPS) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.