Despite seeing a 9% rise over the last six months, at the current price of around $212 per share, we believe UPS stock (NYSE: UPS) has more to go. UPS stock rose from levels of $195 in early September 2021 to $233 in early February 2022 before cooling off to $212 currently. The 9% move for UPS in the last six months compares with -3% returns for the broader S&P500 index. Looking at the longer term, UPS stock is up a solid 118% from levels seen in late 2018. Our dashboard provides more details on the factors behind this move over the last three years.
UPS posted its best year ever in 2021 and announced substantial price hikes in 2022, according to the New York Attorney General’s office. It is not unusual for regulators to go after manufacturers and retailers, but the NY AG is including shipping firms as part of her investigation into possible “price gouging and pandemic profiteering” announced on Friday.
Online sellers may be wary of investigations into price gouging after some were targeted for raising prices of essential goods in the early days of the pandemic. They may feel they should be able to price their products as they see fit, even for items like face masks and hand sanitizer during a global health crisis.
On the other hand, sellers may welcome scrutiny of shipping carriers’ pricing practices. UPS and FedEx have been accused of raising rates in lockstep for many years. Both instituted fuel surcharges, and both generally hike rates by about 5% each January.
Carriers, including KLM Royal Dutch Airlines and United Parcel Service, are filling their planes with pricier fuel for longer Asia routes to avoid Russia due to airspace closures. Jet fuel prices in the United States this week hit the highest in more than a decade.
The U.S. on Tuesday joined Canada and much of Europe in barring Russian aircraft from its airspace. In January, more than 2,500 flights that departed the U.S. used Russian airspace, while 493 flights from Russia used U.S. airspace, according to aviation data firm Cirium.
“With the uncertainty of Russian airspace restrictions to civilian aircraft, UPS decided on Mar. 1 to avoid use of Russian airspace for our Northern Pacific (NOPAC) operations until further notice,” UPS’ pilots union told aviators Wednesday.
As military action continues to unfold in Ukraine, we know many UPSers are watching with great concern – for the region and for our colleagues.
As military action continues to unfold in Ukraine, we know many UPSers are watching with great concern – for the region and for our colleagues.
We can confirm all Ukrainian UPSers, including our Coyote, Marken and Roadie colleagues, are safe and are being contacted daily. Our hearts are with them and their families who are living through this upheaval and uncertainty.
Juan Perez, chief information and engineering officer, spent 32 years at UPS, embedding technology across lines of business.
Perez raised the profile of technology at UPS, weaving it into every area of the business. He pushed the evolution of the logistics company into a technology company, allowing it to recruit talent and compete with companies like Google and Apple.
“We need to continue to disrupt ourselves to remain competitive,” he said, speaking at a conference in 2018. “If we don’t … who will?”
CEO Carol Tomé credited Perez with the creation of the company’s Advanced Technology Group, launching smart package efforts and deploying network planning tools, she said in the announcement Tuesday. Perez also boosted information security and helped modernize the company’s IT.