Down 9% in 2022, Is UPS a Buy Right Now?
UPS (NYSE: UPS) charts its own course. That's the key takeaway from the company's recent second-quarter earnings report. Despite fears over a slowing economy impacting its delivery volumes, UPS demonstrated that its long-term earnings aren't just about mirroring trends in the economy. As such, investors can feel confident that UPS will emerge from any weak economy in good shape, which makes the stock a buy. Here's why.
Investors often follow UPS, FedEx, and the rest of the transportation sector because they are key barometers of broader market conditions. That remains the case, but it's a little bit different with UPS right now, and understanding why is a key part of appreciating the stock's investment case.
There are two critical parts to the argument. First, while Amazon.com (NASDAQ: AMZN) is rapidly expanding its online sales and its own delivery network, it does not pose an existential threat to UPS and FedEx. In fact, there's more than enough delivery volume to go around, and UPS' "better, not bigger" strategy implies being more selective over deliveries.
Source Fool.com
