雅虎香港財經 Is United Parcel Service (UPS) Trading at an Attractive Valuation?
Madison Investments, an investment advisor, released its “Madison Dividend Income Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund (Class Y) returned -2.3% compared to +7.5%, 1.0%, and +0.2% returns for the S&P 500 Index, the Russell 1000 Value Index, and the Lipper Equity Income peer group, respectively. The challenging banking environment pulled the performance of the fund in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Madison Dividend Income Fund highlighted stocks like United Parcel Service, Inc. (NYSE:UPS) in the first quarter 2023 investor letter. Headquartered in Atlanta, Georgia, United Parcel Service, Inc. (NYSE:UPS) is a package delivery company. On April 18, 2023, United Parcel Service, Inc. (NYSE:UPS) stock closed at $194.12 per share. One-month return of United Parcel Service, Inc. (NYSE:UPS) was 4.62%, and its shares gained 1.94% of their value over the last 52 weeks. United Parcel Service, Inc. (NYSE:UPS) has a market capitalization of $166.3 billion.
Madison Dividend Income Fund made the following comment about United Parcel Service, Inc. (NYSE:UPS) in its Q1 2023 investor letter:
“This quarter we are highlighting United Parcel Service, Inc. (NYSE:UPS) as a relative yield example in the Industrials sector. UPS is the industry leader in global transportation services as the largest parcel delivery and logistics firm in the world. We believe it has a sustainable competitive advantage due to high barriers to entry, its low-cost position in the industry, economies of scale benefits, and strong brand recognition. It has a global network of assets including planes, trucks, sorting facilities, and technology that would be difficult to replicate. UPS enjoys the #1 market position in an attractive oligopoly, ahead of competitors FedEx and DHL. Unlike FedEx, UPS operates a single network that handles ground and express packages, which results in industry-best package density and operating margins.
Our thesis on UPS is that it is well-positioned to benefit from a secular trend of growth in e-commerce and onshoring of manufacturing supply chains. Package volumes and revenues are likely to benefit as more e-commerce transactions occur over the next several years. UPS should also benefit as many companies alter supply chains and bring manufacturing operations back to the US. Importantly, we believe UPS has a strong management team that focuses on profitable growth and is willing to pass on unprofitable business. This was demonstrated in 2021 when UPS divested UPS Freight, which was its less-than-truckload business. We applaud the focus on improving returns on invested capital through a “better, not bigger” strategy..." (Please click here to read the full text)
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United Parcel Service, Inc. (NYSE:UPS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held United Parcel Service, Inc. (NYSE:UPS) at the end of the fourth quarter which was 55 in the previous quarter.
We discussed United Parcel Service, Inc. (NYSE:UPS) in another article and shared the list of most profitable industrial stocks. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
