UPS is one of the two leading private parcel companies. The other is Fedex, the other major competition comes from the United States Post Office. As the consumer purchases more and more online, these companies will provide most of the shipping of goods. Trucks are still important for the majority of businesses but a truck isn't going to stop in the front driveway but a smaller UPS truck could certainly stop and unload the daily goods you bought. The online retailers enjoy sending you the goods from a central warehouse instead of hiring employees in the store. The cost of shipping is also not that expensive to the consumer or the corporation as seen that many companies provide free shipping over a certain order price. UPS is very efficient at getting shipments from one place to another quickly getting most shipments delivered in just a few days. Their logistics formula has to be good to have such a well run machine. The company has invested heavily in getting goods from one location to another. This is justified because people will need to move items around and UPS offers good service for a reasonable price. They also provide easy shipments from business to business and that is their true bread and butter.
The stock has returned nicely to shareholders with dividends and with a nice growth in price over the past five years. They have increased revenue and able to maintain being top dog in the industry. UPS's CEO D. Scott Davis has spent a long time with UPS and has run the company through the worst of the most recent recession and made the company stronger. I think with careful research that UPS has positioned itself strongly in their sector. The company will be able to maintain the strong position making this company a good investment choice for the investor. It will be a very important business for everyone and will have more growth in revenues to come.
Disclosure: I do not own UPS or plan on purchasing a position in UPS
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