UPS has an exciting long-term growth strategy, but its near-term capital allocation strategy is questionable. The two package delivery giants continue to compete intensively in the marketplace. Still, there's only one winner in terms of stock price performance over recent years, with FedEx (FDX +3.52%) stock outpacing UPS (UPS +3.16%) stock. However, I think UPS is a better long-term buy, but with...
UPS has an exciting long-term growth strategy, but its near-term capital allocation strategy is questionable. The two package delivery giants continue to compete intensively in the marketplace. Still, there's only one winner in terms of stock price performance over recent years, with FedEx (FDX +3.52%) stock outpacing UPS (UPS +3.16%) stock. However, I think UPS is a better long-term buy, but with one important caveat. UPS growth strategy The company's growth strategy makes sense. Under CEO Carol Tomé, UPS has accelerated its transition toward more targeted end markets and deliveries rather than chasing delivery volume. This strategy entails aiming to voluntarily reduce low- or negative-margin Amazon deliveries by 50% from the start of 2025 to the middle of 2026. For reference, FedEx is filling in some of the void left by UPS and resuming delivery for Amazon after previously ending the service in 2019. Expand NYSE : UPS United Parcel Service Today's Change ( 3.16 %) $ 3.22 Current Price $ 105.22 Key Data Points Market Cap $87B Day's Range $ 102.08 - $ 105.24 52wk Range $ 82.00 - $ 136.99 Volume 6.9M Avg Vol 6.7M Gross Margin 18.48 % Dividend Yield 6.43 % It also involves targeted growth in end markets like small and medium-sized businesses (SMBs), healthcare, and business-to-business e-commerce. At the same time, its investments in technology (automation, smart facilities, etc.) will increase productivity and allow it to rationalize facilities. Instead of making low- and negative-margin deliveries to costly and hard-to-find residential addresses, UPS is pivoting toward higher-priced, higher-margin deliveries for small businesses and healthcare companies. Moreover, this pivot is enabling substantial cost reductions and job reductions. Advertisement The caveat These changes make perfect sense. However, the reality is that UPS is a company that has missed its initial full-year guidance for three consecutive years, largely due to weaker-than-anticipated U.S. delivery vo...
The new year brought a new person into the CEO's office. The weather might be prohibitively cold and miserable, but it's awfully warm where Camping World (CWH +12.78%) stock has pitched its tent. Investors were cheered by the specialty retailer's awarding of large piles of stock to two of its new leaders. With the morale boost this provided, Camping World's shares rose by nearly 13% across the day...
The new year brought a new person into the CEO's office. The weather might be prohibitively cold and miserable, but it's awfully warm where Camping World (CWH +12.78%) stock has pitched its tent. Investors were cheered by the specialty retailer's awarding of large piles of stock to two of its new leaders. With the morale boost this provided, Camping World's shares rose by nearly 13% across the day. Skin in the game With the turn of the year came new leadership at the top of Camping World. High-profile co-founder Marcus Lemonis recently stepped down from his roles as CEO and chairman of the board, and on Jan. 1, he was officially replaced by Matthew Wagner in the former position and by Brent Moody in the latter. As is standard for both roles in publicly traded companies, the two men have been granted Camping World equity in the form of restricted stock units (RSUs), as per their current employment agreements. Regulatory filings submitted after market close Monday reveal that Wagner received 465,000 class A shares of the company's stock, while Moody was handed 59,518. The transition was announced in early December. Although Lemonis is retiring, he has pledged to stay on as an advisor to the company. Wagner, Camping World's former COO, has been with the company since 2007. Moody joined Camping World in 2002 and has served in a variety of managerial roles, including president and chief operating and legal officer. Expand NYSE : CWH Camping World Today's Change ( 12.78 %) $ 1.25 Current Price $ 11.03 Key Data Points Market Cap $614M Day's Range $ 9.73 - $ 11.14 52wk Range $ 9.49 - $ 24.36 Volume 4.1M Avg Vol 2.1M Gross Margin 28.48 % Dividend Yield 5.11 % Veterans rewarded There's a reason equity awards are popular -- when done right, they provide compelling incentive for an incoming executive or board member to act in the very best interests of a company and its investors. If I were a Camping World shareholder, I'd be satisfied with these and confident that these vetera...
Goldman Sachs has updated its top European stock picks for January, rating five stocks with an upside of at least 70%, including one as high as 147%. Here's where the investment bank sees the biggest upside on their 12-month price targets, in order: Ceres Power The U.K.'s Ceres Power could return a 147% upside, according to Goldman analysts. They see the company, which manufactures products for po...
Goldman Sachs has updated its top European stock picks for January, rating five stocks with an upside of at least 70%, including one as high as 147%. Here's where the investment bank sees the biggest upside on their 12-month price targets, in order: Ceres Power The U.K.'s Ceres Power could return a 147% upside, according to Goldman analysts. They see the company, which manufactures products for power generation, including for hydrogen, as a "leading fuel cell player with licensees positioned to benefit from next wave of Datacentre growth." Ceres Power's stock is up 17% over the past 12 months. Online retailer Zalando Goldman analysts kept a positive outlook on German retailer Zalando , whose share price has shed more than 23% over the past year. In December, analysts expected an upside as high as 90% , calling Zalando an "online channel shift winner with underappreciated upside from About You acquisition." The analysts stuck by their rationale but tapered back expectations in January and are now expecting an upside of 78%. In the month between the publication of the two lists, Zalando's share price moved over 7% higher. Hon Hai Hon Hai 's growth acceleration from both AI servers and smartphones has caught Goldman analysts' attention, reaffirming their position from last month's conviction list. They gave the multinational electronics manufacturer an upside of 75%. Its share price has fallen more than 25% over the last 12 months, but advanced nearly 3.8% in December. U.K. finance firm Wise British finance firm Wise , whose share price has slipped a fifth over the last year, is tipped for a 72% upside. It was also on the December list, with its stock rising almost 1.7% over the month . Analysts expect better growth in 2026 with "higher visibility plus cash returns." Horizon Robotics Analysts expect China's Horizon Robotics to earn a 71% upside due to its upgraded product mix that will "capture high end smart-driving demand." It represents a dip in expectations, howeve...
US stock futures were little changed overnight after Wall Street pushed deeper into record territory during Tuesday’s session and awaited a possible heat check in the form of the first labor market report that will kick off a week full of jobs signals. Dow Jones Industrial Average futures (YM=F) hovered slightly higher. Futures attached to the S&P 500 (ES=F) and Nasdaq 100 (NQ=F) traded flat. Stoc...
US stock futures were little changed overnight after Wall Street pushed deeper into record territory during Tuesday’s session and awaited a possible heat check in the form of the first labor market report that will kick off a week full of jobs signals. Dow Jones Industrial Average futures (YM=F) hovered slightly higher. Futures attached to the S&P 500 (ES=F) and Nasdaq 100 (NQ=F) traded flat. Stocks rallied during regular trading Tuesday as investors largely brushed aside geopolitical concerns following US military action in Venezuela over the weekend. The Dow Jones Industrial Average (^DJI) crossed the 49,000 mark for the first time, clinching its second consecutive record high. The S&P 500 (^GSPC) also finished at a record high, as it begins to flirt with the 7,000 mark. Looking ahead, attention is now shifting toward a packed slate of economic releases, as the flow of US data begins to normalize after recent disruptions. Data released Tuesday showed the US services sector lost momentum in December, with S&P Global’s final Services PMI marking the slowest pace of expansion in eight months. On Wednesday, jobs data takes focus, with the release of the ADP's monthly report on private sector employment. That report has shown negative growth in three of the past four months, though forecasts call for modest growth this time. Meanwhile, investors will also get a peek at November's JOLTS data, showing the number of job openings in the market, as well as the number of Americans who quit or were laid off. Those reports set the stage for Friday’s December jobs report, which has taken on critical importance as investors viewing it as a key test of whether the economy is cooling enough to justify Federal Reserve policy changes in the months ahead. Meanwhile, the CES 2026 show continues to provide food for thought as heady promises from tech leaders clash with Wall Street expectations of what the sector can achieve. Discussion has centered on Nvidia (NVDA), as analysts diverge...
Key Points Altria is a large consumer staples company with an industry-leading brand. The stock boasts a growing dividend to back its huge 7.4% yield. Long-term investors need to pay attention to this troubling business trend. 10 stocks we like better than Altria Group › Altria (NYSE: MO) sells Marlboro cigarettes in the United States. It is one of the best-known brands in the world, at least amon...
Key Points Altria is a large consumer staples company with an industry-leading brand. The stock boasts a growing dividend to back its huge 7.4% yield. Long-term investors need to pay attention to this troubling business trend. 10 stocks we like better than Altria Group › Altria (NYSE: MO) sells Marlboro cigarettes in the United States. It is one of the best-known brands in the world, at least among smokers. Add in Altria's steadily growing dividend and a 7.4% yield, and it would seem like this is a slam-dunk dividend stock for those looking to build a million-dollar portfolio. That's doubly true if you compound those dividends by reinvesting them. There are just a couple of problems with Altria's story. Here's what you need to know before you buy this high-yield stock, thinking that it will help turn you into a millionaire. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks » Altria's core is weak Altria is classified as a consumer staples company. That is because it sells a relatively low-cost product that consumers purchase on a regular basis, regardless of economic or stock market fluctuations. There's a nuance here, however, because Altria doesn't sell life necessities like food and toiletries; it sells tobacco products. Tobacco products are bought regularly because nicotine is addictive. This is where the problems start for Altria, because cigarettes are the primary way it provides nicotine to consumers. Smokable tobacco products account for nearly 90% of the company's revenues. Cigarettes account for just over 97% of its smokable tobacco product volumes. Sure, it owns the most important cigarette brand in the U.S. market, with a 40% overall market share and a nearly 60% share of the premium market. But that positive has to be juxtaposed against the fact that Altria's business is centered around one product and, really, just one brand, since Marl...
Global markets are largely taking President Trump's raid and capture of Venezuela’s Nicolas Maduro in stride -- in the first full trading day after the weekend's events, stocks gained, along with traditional havens like gold and treasuries. As the Trump administration keeps showing that the rules of diplomacy are changing, traders and analysts are catching up to a regime-shift signal for global ma...
Global markets are largely taking President Trump's raid and capture of Venezuela’s Nicolas Maduro in stride -- in the first full trading day after the weekend's events, stocks gained, along with traditional havens like gold and treasuries. As the Trump administration keeps showing that the rules of diplomacy are changing, traders and analysts are catching up to a regime-shift signal for global markets, one that makes geopolitical tail risks fatter going forward. Peter Tchir, Head of Macro Strategy at Academy Securities, joins Bloomberg Businessweek Daily to discuss. He speaks with Carol Massar and Tim Stenovec. (Source: Bloomberg)