UPS - United Parcel Service, Inc.

NYSE - NYSE Delayed Price. Currency in USD
99.72
+0.10 (+0.10%)
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Performance Outlook
  • Short Term
    2W - 6W
  • Mid Term
    6W - 9M
  • Long Term
    9M+
Previous Close99.62
Open100.00
Bid0.00 x 800
Ask99.58 x 1100
Day's Range98.33 - 101.10
52 Week Range82.00 - 125.31
Volume5,405,115
Avg. Volume5,796,496
Market Cap85.976B
Beta (5Y Monthly)0.83
PE Ratio (TTM)20.19
EPS (TTM)4.94
Earnings DateJul 22, 2020 - Jul 27, 2020
Forward Dividend & Yield4.04 (4.06%)
Ex-Dividend DateMay 22, 2020
1y Target Est103.22
Fair Value is the appropriate price for the shares of a company, based on its earnings and growth rate also interpreted as when P/E Ratio = Growth Rate. Estimated return represents the projected annual return you might expect after purchasing shares in the company and holding them over the default time horizon of 5 years, based on the EPS growth rate that we have projected.
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  • Reuters

    CVS, Nuro to test driverless prescription delivery in Houston area

    CVS Health Corp and unmanned vehicle delivery Nuro in June will start testing a service that drops prescriptions and other essentials free of charge to some customers in the Houston area, the companies said on Thursday. CVS and other companies are experimenting with myriad ways to serve customers who may be reluctant or unable to visit stores due to the coronavirus pandemic, which has fueled demand for home delivery of everything from groceries and medicine to patio furniture and gardening supplies. Mountain View, California-based Nuro said in a blog post that the service in Houston will launch with its autonomous Prius fleet and then switch in subsequent months to R2, its low-speed, custom-built delivery bot.

  • E-commerce Drives Multi-Pronged Expansion At UPS Airlines
    Benzinga

    E-commerce Drives Multi-Pronged Expansion At UPS Airlines

    UPS Airlines is expanding in the midst of a coronavirus pandemic that is forcing passenger airlines to shrink fleets and permanently downsize in line with expectations for weak travel demand in the coming years.The United Parcel Service, Inc (NYSE: UPS) fleet has been busy flying charter flights for the Federal Emergency Management Agency and other customers ordering desperately needed medical supplies for the COVID-19 response in the U.S. and other countries. But the real driver of extra business and aircraft investment is e-commerce and customers seeking express shipping – factors that were rising in importance well before the pandemic.In the first quarter, Next Day Air shipments in the U.S. grew by 20.5%, the fourth consecutive quarter of double-digit growth, the company said in its earnings report. In 2019, Next Day Air grew more than 22%.The popularity of online shopping continues to grow and consumers don't want to wait for their orders. Two-day shipping is now standard for many merchants. It remains an open question whether coronavirus stock-outs will force a rethink among companies trying to implement one-day or same-day deliveries. Global e-commerce sales are projected to more than double to $6.5 trillion by 2023, according to Statista. The Boston Consulting Group estimates U.S. e-commerce sales will double too, to $1 trillion, growing at six times the rate of all retail transactions. More than half of that growth is through giant marketplaces such as Rakuten, JD.com (NASDAQ: JD) Alibaba (NYSE: BABA) and Amazon that enable merchants to reach much larger audiences than they could on their own.Amazon.com Inc (NASDAQ: AMZN), is UPS' largest customer, accounting for 11.6% of UPS' $74 billion in revenue last. UPS is picking up more business as rival FedEx Corp. (NYSE:FDX) dissolved its U.S. air and ground delivery partnerships with Amazon.And e-commerce continued to boom as the coronavirus pandemic forced large numbers of people to quarantine at home and avoid brick-and-mortar stores.On May 12, UPS Airlines took delivery of a new 767 freighter from Boeing Co (NYSE: BA), one of 22 new, converted or leased 767s the company is adding over five years ending in 2022. Seven days later the all-cargo plane took its first revenue flight, UPS spokesman Jim Mayer said in an email. Boeing's website shows seven unfilled UPS orders for production of 767 freighters.Overall, UPS is expanding its in-house airline by 55 aircraft over that period, equivalent to more than 12 million pounds of payload capacity, including 28 Boeing 747-8 production freighters. Thirteen of the 747-8s are still on back order. The fourth-largest airline in the world currently operates 261 aircraft of its own and utilizes about 200 more through short-term leases and charters, according to a company fact sheet. UPS said in a tweet several days ago that it is adding five MD-11 aircraft — two this year and three in 2021. Mayer confirmed that the planes are used passenger aircraft that are being converted and resold by Boeing.Although the triple-engine planes are less fuel-efficient than many others in service today, they have large cargo payloads and are inexpensive, Mayer explained to The Points Guy blog.E-commerce also propelled Louisville International Airport in Kentucky to fourth place in preliminary rankings of the world's busiest cargo airports, released this month by Airports Council International. UPS's Worldport global package hub is located at the airport, which also serves as home base to UPS Airlines.Airports Council International 2019 ranking of top global cargo airports.The Louisville airport moved up three spots as freight and mail volume increased 6.4% to a record 6.2 billion pounds (2.8 million metric tons). It also moved up to second place, from third, among the largest cargo airports in the U.S. Louisville was one of the few airports to gain cargo business during a year when overall cargo demand fell 3.9%. And cargo volume grew 2.2% in the first quarter, despite economic slowdowns around the world due to the coronavirus.Hong Kong remained the top global airport for cargo, despite a 6.1% decline in volume attributed to trade tensions between the U.S. and China and pro-democracy protests that dampened air travel and flights to the city. Memphis, Tennessee, home to FedEx Express, continued to hold the second spot for cargo, followed by Shanghai.New Chicagoland AirportOnline deliveries are also behind the recent decision to expand the UPS express air network to Gary/Chicago International Airport in Indiana. UPS said it will begin operating there Nov. 2, in time for the peak holiday shipping season, with an Airbus A300 cargo plane that can carry more than 14,000 packages.Each weeknight the aircraft will depart Gary for the UPS Worldport in Louisville and return in the morning with packages sorted from around the world for the northern Indiana and Chicago area.UPS said it expects to employ about 60 people at the airport, including ground handlers, administrative personnel, aircraft maintenance technicians and managers. UPS signed a lease on May 13 for 14,000 square feet of office space in the airport's passenger terminal and a 150,000-square-foot ramp area with enough space to park two A300s.UPS will install a mobile distribution center on the ramp, Mayer tells FreightWaves. The MDC is a poured foundation and a modular metal building with truck doors and a conveyor belt inside for directing packages to the correct vehicle. Mayer said the MDCs give UPS a quick way to add sort capacity and are sometimes used at existing warehouses to expand operating space during the peak holiday season. See more from Benzinga * Beef And chicken inventories Surge In April * Weekly Fuel Report: May 25, 2020 * Amazon Is Serious About Self-Driving Technology, Eyeing Multi-Billion Dollar Acquisition(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Amazon Buying Zoox May Save $20 Billion, Put Tesla on Its Heels
    Bloomberg

    Amazon Buying Zoox May Save $20 Billion, Put Tesla on Its Heels

    (Bloomberg) -- Amazon.com Inc.’s talks to buy driverless vehicle startup Zoox Inc. has analysts speculating the deal could save the e-commerce giant tens of billions a year and put auto, parcel and ride-hailing companies on their heels.Shipping costs are one of Amazon’s largest expenses and may reach $90 billion in the coming years, Morgan Stanley’s internet, auto and transport analysts wrote in a report Wednesday. An autonomous offering could save the company more than $20 billion annually, they estimate.“Autonomous technology is a natural extension of Amazon’s efforts to build its own third party logistics network,” Morgan Stanley’s analysts wrote. They see the company being a “clear” competitor to the likes of Tesla Inc. and General Motors Co. and the potential for Amazon to compete in ride-sharing and food delivery. United Parcel Service Inc. and FedEx Corp. also “will have to respond to keep up.”Other companies in the automotive and chip industries have also held talks with Zoox about a potential investment, according to people familiar with the matter. At least one other business besides Amazon has offered to buy the company, they added. Zoox is unlikely to sell for less than the more than $1 billion that it has raised, according to the people, who asked not to be identified discussing private negotiations.“Zoox has been receiving interest in a strategic transaction from multiple parties and has been working with Qatalyst Partners to evaluate such interest,” the startup said Tuesday. It declined to comment on Amazon’s interest. A spokeswoman for Amazon declined to comment.Zoox had outsize ambition and financial backing. The startup wanted to build a fully driverless car by this year. However, after a 2018 funding round that valued Zoox at $3.2 billion, the startup’s board voted to oust Chief Executive Officer Tim Kentley-Klay. The executive criticized the move, saying the directors were “optimizing for a little money in hand at the expense of profound progress.”Dow Jones reported that Amazon is in advanced talks to buy Zoox for less than the $3.2 billion valuation from 2018.Amazon is willing to spend heavily to automate its e-commerce business. The online retail giant purchased warehouse robot-maker Kiva Systems Inc. in 2012 for $775 million and now has tens of thousands of robots in warehouses around the world.But paying drivers to deliver packages is still one of the biggest costs in the company’s operation. Chief Executive Officer Jeff Bezos announced plans for drone delivery in 2013, though they have yet to materialize at scale. Last year, Amazon revealed an experimental delivery robot called Scout in the Seattle area that rolls on sidewalks like a shopping cart.Last year, Amazon invested along with Silicon Valley venture firm Sequoia Capital in self-driving startup Aurora Innovation Inc., a startup led by the former heads of Google’s driverless car project and Tesla’s Autopilot team. Amazon also backed Rivian Automotive Inc., the electric pickup and SUV maker. Those bets left Morgan Stanley’s auto analyst questioning earlier this month whether Tesla’s rich valuation is warranted given the competitive threats the company faces.“We often hear from investors that Tesla could potentially be the Amazon of transportation,” Adam Jonas, who rates Tesla the equivalent of a hold, wrote in a May 17 report. “But what if Amazon is the Amazon of transportation?”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • UPS adds 'peak' surcharge amid coronavirus fueled delivery spike
    Reuters

    UPS adds 'peak' surcharge amid coronavirus fueled delivery spike

    United Parcel Service Inc on May 31 will slap surcharges on U.S. e-commerce companies that have flooded its delivery network with shipments of everything from packaged food to patio furniture since the coronavirus took hold in March. Such fees are common during the winter holiday season, when package volumes more than double. This round follows stay-at-home orders to fight the spread of the novel coronavirus.

  • GlobeNewswire

    UPS Healthcare Announces UPS Premier

    ATLANTA, May 28, 2020 -- A New Technology-Enabled Service Within Its Own Network And BeyondUPS Premier improves service reliability with priority-handling and improved.

  • Ware2Go Study: 87% of Americans Are Taking Up New Activities During Coronavirus Isolation, Ushering in the ‘Business to Everyone’ Era
    Business Wire

    Ware2Go Study: 87% of Americans Are Taking Up New Activities During Coronavirus Isolation, Ushering in the ‘Business to Everyone’ Era

    Ware2Go, a UPS (NYSE:UPS) company that helps merchants simplify fast delivery to customers, announced new research results from its recent survey of American consumer habits during the coronavirus pandemic. Some 87% of Americans are taking up new activities due to shelter-in-place directives being implemented to slow the spread of COVID-19.

  • Barrons.com

    With Aircraft Prices Sliding, the Time Is Ripe for an Expansion of Amazon Air

    Now might be the perfect time for Amazon.com to throttle up plans for its airfreight business, says BofA Global Research analyst Justin Post.

  • Bloomberg

    Amazon Prime Air Seen Surging Fivefold to 200 Jets, Rivaling UPS

    (Bloomberg) -- Amazon.com Inc.’s Prime Air fleet will grow to about 200 planes -- up from 42 now -- in the next seven or eight years, creating an air cargo service that could rival United Parcel Service Inc., according to a study.“At a time when many other airlines are downsizing due to the pandemic, Amazon’s push for faster and cheaper at-home delivery is moving ahead on an ambitious timetable,” said the report issued Friday by DePaul University’s Chaddick Institute of Metropolitan Development. “Amazon Air’s robust expansion makes it one of the biggest stories in the air cargo industry in years.”Amazon unveiled the air cargo service in 2016, prompting speculation that it would ultimately create an overnight delivery network to rival delivery partners UPS and FedEx Corp.Prime Air operates out of smaller regional airports close to its warehouses around the country, helping Amazon quickly move inventory to accommodate one- and two-day delivery. For that reason, some analysts have dismissed Amazon as a potential competitor to UPS and FedEx since it can only offer limited service to a small number of destinations and seems designed to handle Amazon packages.Key to its ability to take on the entrenched players, the report says, is Amazon’s new $1.5 billion facility near Cincinnati that will accommodate up to 100 planes and as many as 200 flights each day. Amazon’s lack of a central hub has kept it from competing in the overnight delivery services offered by UPS and FedEx, which have more planes flying to more destinations.“The massive investment being made in a large hub at Cincinnati/Northern Kentucky International Airport, however, could change everything,” the report says. “This hub appears to be the linchpin to Amazon’s efforts to develop a comprehensive array of domestic delivery services.”A separate report released Monday noted Amazon’s lack of a central hub in concluding it was not a competitive threat to FedEx, which has a hub in Memphis, or UPS, which has one in Louisville. FedEx’s network can offer 9,000 daily flight connections, UPS’ 5,500 and Amazon Air just 363, according to the report from Bernstein.“The viability of a commercial overnight offering from Amazon remains very limited,” Bernstein analyst David Vernon wrote. “Offering a low cost on shipping to a small number of markets every so often will never be a serious competitive threat.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Barrons.com

    USPS Needs Fixing. Wall Street Has a Plan.

    Investors should watch what happens, because changes for the U.S. Postal Service have big implications for FedEx and UPS, and for companies involved in e-commerce.

  • GlobeNewswire

    UPS Delivers 5 Millionth Meal to Rural Students and their Families Impacted by Novel Coronavirus Crisis

    UPS (UPS), a global leader in logistics, in partnership with McLane Global, a leading food and logistics company, today announced the delivery of the five millionth meal through the Emergency Meals-to-You program, designed to deliver shelf-stable, nutritious meals to students in rural areas of the country. The program is a partnership between McLane Global, UPS, USDA, the Baylor Collaborative on Hunger and Poverty, and PepsiCo to deliver meals to students in rural areas who would otherwise go hungry due to the impact of the novel coronavirus. The logistics solution was developed with support from The UPS Foundation, which leads UPS’s global citizenship programs.

  • GlobeNewswire

    UPS Healthcare Provides Urgent Support For Dr. Reddy’s Laboratories’ Temperature-Sensitive Medicines

    Due to flight restrictions on the pharmaceutical company’s supply chain because of the Coronavirus pandemic, Dr. Reddy’s teamed up with UPS Healthcare to get 30 tons of temperature-controlled medical cargo from India to the U.S. ATLANTA, May 18, 2020 (GLOBE NEWSWIRE) -- UPS (UPS) today announced a collaboration with Dr. Reddy’s Laboratories to get 30 tons of pharmaceuticals from India to the United States via Europe. Given the supply chain challenges and restrictions due to the Coronavirus pandemic, UPS Healthcare and Dr. Reddy’s created an emergency supply chain plan to replenish pharmaceutical stocks in U.S. markets.

  • Reuters

    FOCUS-Automated delivery cashes in on pandemic-driven demand

    The coronavirus crisis is accelerating a shift in the world of autonomous cars toward delivering packages instead of people, as big players open up a lead over startups in the race for funding. "The reality right now is that goods delivery is a bigger market than moving people," John Krafcik, chief executive officer of self-driving technology company Waymo, told Reuters in early May. Waymo, a unit of Google’s parent Alphabet, started out focusing on autonomous taxis.

  • GlobeNewswire

    UPS Board Announces Quarterly Dividend

    ATLANTA, May 14, 2020 -- The UPS (NYSE: UPS) Board of Directors today declared a regular quarterly dividend of $1.01 per share on all outstanding Class A and Class B shares..

  • UPS Announces Service Expansion on Next Day Air Volume Surge
    Zacks

    UPS Announces Service Expansion on Next Day Air Volume Surge

    With a rapid rise in Next Day Air volumes, UPS plans to launch air service from Gary/Chicago International Airport on Nov 2.

  • Matternet Readies Cargo Drone For FAA tests
    Benzinga

    Matternet Readies Cargo Drone For FAA tests

    One of the country's largest small drone manufacturers is ready to begin durability and reliability testing of one of its cargo delivery units with the U.S. Federal Aviation Administration (FAA) this year.Mountain View, California-based Matternet announced Tuesday that the testing with the agency brings the company's M2 drone closer to receiving special type certification for unmanned aircraft systems.Achieving this certification from the FAA will establish that Matternet's M2 drone is airworthy and eligible for use by commercial air carriers. While numerous cargo delivery drones are undergoing development and testing, none has received this level of certification.Since March 2019, FAA-approved drone airline UPS Flight Forward has used Matternet's M2 drones to carry out various urban cargo delivery tests throughout the country.In partnership with WakeMed Health, UPS Flight Forward used M2 drones to complete more than 1,850 deliveries of lab samples within its Raleigh, North Carolina, medical campus in 2019. The FAA requires UPS drone operators to maintain a clear line of sight of the machines during flight.This month UPS Flight Forward will use M2 drones to make short-distance deliveries of prescription drugs from a CVS Health Corp. pharmacy to The Villages in Florida, the largest U.S. retirement community and home to more than 135,000 residents.The potential for "touchless" drone deliveries of medical supplies, lab samples and pharmaceuticals has taken on increased significance with efforts to combat the spread of COVID-19 within communities."The Matternet M2 has been purpose-built for its mission of urban medical delivery, combining solid engineering, years of flight experience, and the safety and security required for medical logistics," said the company's CEO, Andreas Raptopoulos, in a statement.Receiving this type of certification from the FAA will allow UPS to scale operations much more quickly, Matternet said.However, industry experts say the agency's durability and reliability testing to certify airworthiness is rigorous."This will probably be measured in years rather than months," said Michael Blades, vice president of aerospace, defense and security at investment strategies firm Frost & Sullivan. "The strict safety requirements will require a lot of testing over a relatively long period of time."Amazon.com Inc (NASDAQ: AMZN) began developing drones in 2013 for consumer deliveries. Since then, other express delivery companies, such as United Parcel Service, Inc (NYSE: UPS) and FedEx Corporation (NYSE: FDX), have initiated their own plans for the technology.Blades told American Shipper during an interview in mid-April that FAA regulations for drone flight ceilings, times of operation and visual contact by operators during flight continue to hold back the technology's commercial cargo potential in the U.S.He estimated in a recent Frost & Sullivan report that between 2019 and 2023, about 100,000 drones will be in use for cargo delivery applications, and they will be operated by firms providing niche services.Photo credit: MatternetSee more from Benzinga * Avianca Receives Preliminary OK For Chapter 11 Bankruptcy * Today's Pickup: How A Canadian Carrier Recession-Proofed Its Business * Double-Digit Percentage Declines Persist For US Rail Volumes(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • GlobeNewswire

    UPS To Launch Air Service From Gary/Chicago International Airport

    UPS (UPS) today announced the expansion of its express air network to Gary/Chicago International Airport. Gary will be served by a UPS Airlines Airbus A300. With a maximum payload of more than 120,000 lbs., the wide body cargo jet can carry more than 14,000 UPS Next Day Air® packages.

  • Ware2Go Study: Online Shoppers Buying From More Sellers and Broader Categories
    Business Wire

    Ware2Go Study: Online Shoppers Buying From More Sellers and Broader Categories

    Online shoppers are buying from more sellers and in more product categories amid shelter in place orders and social distancing practices, according to a survey by Ware2Go, a UPS (NYSE:UPS) company that helps merchants simplify fast delivery to customers. More than half (55%) say they’re purchasing from online retailers they’ve never shopped with before and buying a broader range of products: 61% buying groceries, 45% purchasing clothing, and 34% buying vitamins and supplements online.

  • How Drones Are Changing the Business World
    Investopedia

    How Drones Are Changing the Business World

    The economic impact associated with unmanned aerial vehicle (UAV) integration consists of job creation and billion-dollar growth.

  • Barrons.com

    The USPS Faces an ‘Existential Threat.’ What That Means for FedEx and UPS Stock.

    The U.S. Postal Service lost $4.5 billion in the quarter ended March, and more pain is coming. Logistics investors should be aware of results the USPS reports because it is a huge player in the shipping industry.

  • Even the Essential Industries Aren’t Adding That Many Jobs
    Bloomberg

    Even the Essential Industries Aren’t Adding That Many Jobs

    (Bloomberg Opinion) -- Amid the worst jobs report in the history of jobs reports, a few industries actually added jobs from mid-March to mid-April.“General merchandise stores including warehouse clubs and supercenters” is the North American Industry Classification System category for Walmarts, Targets, Dollar Trees, Sam’s Clubs, Costcos and such. It seems likely that supermarkets also saw job gains, but for them and most other industry subcategories employment is reported with a one month lag, so we won’t know until the next jobs report. Food and beverage stores, the supersector that includes supermarkets, saw a 42,000-job seasonally adjusted decline in employment in April.Among the other job-gaining sectors, “other information services” may require some explanation. About 80% of its jobs are at “Internet publishing and broadcasting and web search portals,” which covers the likes of Google, Facebook and Twitter. The remainder are at other digital information providers such as, well, the publisher of Bloomberg Opinion. “Couriers and messengers” is FedEx, United Parcel Service and their ilk.One thing that stands out here is that the job gains are really, really tiny compared with the 20.5 million jobs lost. We may well see a more significant shift of employment into pandemic-resistant or pandemic-fighting sectors in the coming months, but that takes a while. And given that the shifts in demand that have had everybody lining up at Costco for toilet paper are not (one hopes) permanent, such companies are unlikely to go overboard with hiring.Another thing that stands out is that a lot of sectors that would seem to be quite essential in a pandemic nonetheless shed jobs. I’ve listed a selection here, ranked by percentage job losses rather than the absolute numbers because that seemed more informative.Other health-care sectors were even harder hit as almost all non-coronavirus-related care was put on hold for the month, with employment down 15.2% at ambulatory health-care services and 52.5% at dentists’ offices. Then again, a lot of those jobs ought to return quickly as well, although things are definitely going to be tough for dentists and dental hygienists, whose work probably entails more intense coronavirus risk than any other.The bigger message here may just be that a U.S. economy that is pared down to “essentials” isn’t much of an economy. Here’s hoping we all start doing a lot more nonessential (but also non-virus-spreading) things soon.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Justin Fox is a Bloomberg Opinion columnist covering business. He was the editorial director of Harvard Business Review and wrote for Time, Fortune and American Banker. He is the author of “The Myth of the Rational Market.”For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • UPS Stock Can Handle the Load
    InvestorPlace

    UPS Stock Can Handle the Load

    In the center of the novel coronavirus pandemic, the question on income investors' minds is whether any stock can afford to pay its dividend. United Parcel Service (NYSE:UPS) stock can handle that load.Source: Sundry Photography / Shutterstock.com For the March quarter, UPS had net income of $935 million, $1.11 per share diluted, on revenue of $18 billion. That was higher than its quarterly dividend payout of $1.01 per share. The company also announced free cash flow of $1.6 billion, also enough to clear the dividend's cost.Analysts whined about the revenue mix, which was higher for residential than commercial deliveries, and terrible for international. But UPS opened for trading May 8 at about $93, and that dividend yield is about 4.3%.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Income Investors Take NoteAt a time when retired investors are reaching for yield in high-risk corporate bonds, the UPS dividend should be attractive. While common stock investors are always last in line for corporate obligations, behind bonds and all other bills, UPS proved this winter it can deliver results in all economic seasons.This has not made it a stock for all investors. Those seeking capital gains will see its down 20% so far in 2020. Those seeking growth will see that March revenue was just 5% ahead of last year. Analysts are updating their models to reflect UPS' slow, steady and profitable growth. * 7 A-Rated REITs to Buy NowUPS isn't coming away from the pandemic unscathed. Home deliveries are less profitable than bulk deliveries to business. First-quarter profit was down from a year earlier, even while revenue grew.UPS is also finding new ways to compete with Amazon.com (NASDAQ:AMZN). Its network of UPS Stores means it has a physical presence that can even take Amazon returns. This will expand through an agreement to take packages from The Michaels Companies (NASDAQ:MIK) chain of crafts stores, when retailing reopens.While longtime rival FedEx (NYSE:FDX) has gotten itself into trouble by picking fights with Amazon, UPS learned to adapt. I have speculated it's because FedEx is still led by founder Fred Smith, while UPS has recharged its management with outsiders from Home Depot (NYSE:HD), PepsiCo (NYSE:PEP) and Walmart (NYSE:WMT). For them, Amazon is less an existential threat than a part of the business environment. A Trump Bump?UPS may also benefit from Trump's insistence that the U.S. Postal Service stop "subsidizing" Amazon and raise rates. Such a move would bring UPS more incremental business, cash with which to expand its own delivery network.During the current quarter, UPS drivers are hitting the road more, but making less for the company. That should change as stores and factories re-open over the next few months. UPS has also proven it can make money in a tough environment so that, if the lockdowns return, it is ready.Competition with Amazon also steeled UPS in the use of new technology. It is now delivering prescriptions to some senior centers using drones, in conjunction with CVS Health (NYSE:CVS). The pandemic is giving UPS the cash flow to move ahead in areas that had previously been theoretical. The Bottom Line for UPS StockUPS stock is not for everyone.In today's market it's the equivalent of an old-line industrial. It's a slow growth company with a steady stream of income.That means if you're looking for capital gains, look elsewhere. UPS' share price should recover as the pandemic retreats, but it will never be a high-flyer. It will continue to ride low to the ground.But at a time when high-flyers are out of fashion, with conservative investors doing triage on their portfolios against the virus' siege, UPS stands out at its current price. It will still pay you to own it, and that's saying something.Dana Blankenhorn has been a financial and technology journalist since 1978. His latest book is Technology's Big Bang: Yesterday, Today and Tomorrow with Moore's Law, essays on technology available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in CVS and AMZN. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post UPS Stock Can Handle the Load appeared first on InvestorPlace.

  • Bloomberg

    SBA Treated as a Washington Backwater, Until Disaster Strikes

    (Bloomberg) -- The only person who didn’t speak at a White House briefing on a massive federal effort to aid mom-and-pop firms crushed by the coronavirus pandemic was the woman actually running the initiative, Jovita Carranza.President Donald Trump, his daughter Ivanka and Treasury Secretary Steven Mnuchin all lauded the program despite its rocky start at the beginning of April. Carranza, who was charged with processing hundreds of billions of dollars in loans only months into her new job as the head of the Small Business Administration, smiled approvingly, but was never asked to speak.Carranza’s sideline role at the April 28 event was emblematic of the challenges facing her agency, which has long been treated as a backwater in Washington. Despite its checkered track record in disaster response, the SBA is now responsible for a $669 billion program to rescue the 30 million small firms that make up nearly half the U.S. economy.The SBA has approved more than half a trillion dollars in loans in a matter of weeks and has about $125 billion left before a second round of funding runs out. Advocates fear that the money will be exhausted again before all small firms that need it get help. At the same time, Trump is pushing to reopen the economy with polls showing Americans are wary about returning to business as usual.For years, Congress hasn’t set up the SBA to adequately respond to crises. And lawmakers have never before asked it to handle an effort as massive as the Paycheck Protection Program, meant to help devastated small businesses survive the pandemic.Working with the Treasury, Congress decided that to get money out fast, it had to put the SBA in charge because the agency already had an established loan program with a network of pre-approved banks. That left Carranza, who was a deputy administrator under President George W. Bush, to make the best of a situation everyone worried would be fraught with problems.‘Massive, Massive Program’“They gave the SBA, an agency that has repeatedly botched previous disaster responses, the responsibility to handle this massive, massive program,” said Veronique de Rugy, a senior research fellow at George Mason University’s Mercatus Center who has studied the agency’s history.An agency spokesman called the SBA’s performance an “historic achievement.” A Treasury spokeswoman agreed that the SBA is performing well under Carranza and said that she works closely with Mnuchin. White House spokespeople didn’t respond to a question about why she wasn’t invited to address the April 28 White House event.Carranza declined to be interviewed for this article.“She’s been faced with about the most challenging circumstance a head of the SBA has ever had to operate under,” said Representative Steve Chabot of Ohio, the top Republican on the House Small Business Committee. “I mean, the very survival of the American economy rests on your shoulders.”The SBA, which was elevated to a cabinet-level agency by President Barack Obama, supports the nation’s small businesses through loan programs and training for entrepreneurs. In times of crisis, including after Hurricanes Katrina, Irma and Harvey, the agency bolstered its funding programs to supply mom and pop firms and homeowners with emergency capital.The rocky launch of the PPP program featured some of the same problems the SBA hadn’t fixed after past disasters, in addition to new ones. Technology meltdowns and the way the program was structured led to delays in getting the money to those who needed it the most.In the first round of funding, many small companies were left stranded while hundreds of publicly traded companies got more than $1 billion. Major banks favored large corporate clients, whose bigger loan amounts gave lenders fatter fees. Congress was forced to replenish the fund just two weeks after it began.The SBA has been especially handicapped under Trump, according to John Arensmeyer, who heads the Small Business Majority, an advocacy group that has a network of more than 58,000 small business owners, most of whom have less than 100 employees.When Carranza took up her post in January, the agency had had a leadership vacuum and was being run by its general counsel. Its former head, Linda McMahon, a Trump donor and co-founder of World Wrestling Entertainment, Inc., left in April 2019 to chair Trump’s 2020 Super-PAC America First Action. Carranza was picked for the post last July after serving as U.S. treasurer since June 2017. In that role, she advised Mnuchin and oversaw the printing of money. Her signature appeared on bills.The White House still hasn’t nominated a new No. 2 -- the deputy administrator who normally handles the day-to-day affairs -- after the last one left in 2018. In February, Trump proposed cutting the agency’s 2021 budget by 25%.The Government Accountability Office, Congress’s watchdog agency, has repeatedly warned that the SBA’s technology needs to be revamped. Its budget is about $1 billion and its staff of more than 6,000, compared with the Commerce Department, which has 52,000 employees and a budget of $15.2 billion. Although Congress eventually added $2.8 billion for SBA salaries and other expenses in its pandemic relief measures, some said it was too little, too late, given the magnitude of the task.“The SBA is going to need to be better-funded and more of a priority agency simply because of the disaster that’s befallen small businesses across the country,” said Arensmeyer. “I would hope that the administration and Congress recognize that.”Despite the difficulties, Carranza has earned the respect of key lawmakers and small-business groups, who said she’s been accessible, willing to listen and a problem-solver.She is no stranger to challenges. A native of Chicago and the daughter of first-generation Mexican-Americans, she worked two jobs and raised a child as a single mother, according to her testimony during her December Senate confirmation hearing.She spent 30 years at United Parcel Service Inc., where she started as a part-time, hourly employee on the warehouse docks, loading packages onto trucks. She climbed the ladder to eventually lead the company’s operations in Latin America and the Caribbean, managing thousands of employees. She retired as the highest-ranking Latina in the company’s history.Carranza ran the SBA’s day-to-day operations under Bush from 2006 to 2009. As deputy administrator, she oversaw 80 national field offices and a portfolio of loans worth tens of billions of dollars. She developed the SBA’s disaster recovery plan after the agency faced a torrent of criticism over how slowly it administered loans after Hurricane Katrina.Her former SBA colleagues describe her as a hands-on manager who can speak authoritatively on minute details. Eric Thorson, who was the SBA’s inspector general at the time, said agency heads often had antagonistic relationships with their inspectors general. That wasn’t the case with Carranza, who was eager to address issues his office highlighted, he said.Carranza began her second stint at SBA with ambitious goals to reform the agency, including doing more to support women and minority-owned businesses and making the agency’s emergency loan systems more efficient.Then catastrophe struck. By mid-March, the pandemic had prompted businesses to close their doors as stay-at-home orders stretched across the country. Hotels, airlines, media, restaurants and manufacturers shed jobs by the millions as revenue dried up.Carranza and Mnuchin met with lawmakers including Senators Marco Rubio, a Florida Republican, and Ben Cardin, a Maryland Democrat, to hammer out a small business aid package as part of the administration’s multi-trillion-dollar relief initiative. Democrats on the small business panel wanted to set up a grant program, which Republicans opposed because they thought it would take too long and instead pushed for a loan program, according to a person familiar with the matter.Lawmakers worried that the SBA wouldn’t be able to handle the job. Mnuchin dispatched Deputy Secretary Justin Muzinich, his No. 2 at the Treasury, to the SBA to smooth out the program’s rollout, according to a person familiar with the matter.Representative Nydia Velazquez, a New York Democrat and chairwoman of the House Small Business Committee, said she called Carranza after the program was approved and told her: “You got to be prepared.” Carranza replied that she had her team working overtime to be ready because she knew how important it was to the economy, Velazquez said.‘She Is Committed’“She has been there, what, three months?” said Velazquez. “I know she is committed. I know they are working hard.”The SBA has moved much more quickly amid the coronavirus pandemic than in past crises, despite a flood of applications and technology glitches. It made changes to ensure the money gets to those who need it the most, including creating a window when only the smallest lenders could apply. Lawmakers, the White House and even Carranza herself have boasted about how rapidly the agency was able to distribute the loans.The SBA’s pandemic response could face more attacks as it distributes an additional $320 billion. It missed an April 26 deadline for providing guidance on how loans will be forgiven -- meaning that small business owners who struggled to get funding still don’t know how much they may have to repay.Cardin said the pandemic has underscored the need to fix the country’s response to disasters. “There’s two parts to this,” Cardin said. “One is to triage this current situation to make sure underserved communities get loans” and the other is to build capacity for the future, he said. “Whether they’re economic downturns or natural disasters or other pandemics,” Cardin added, “there will be other problems.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.