The coronavirus pandemic struck the world most unexpectedly and brought about a sudden halt amongst various sectors. While there are so many sectors that faced its wrath, there are also sectors that made the most out of this pandemic. The year 2020 therefore, was a year of surprising happenings but some firms emerged out during this time and benefitted as much as they could.
Let us for example take the case of United Parcel Service which at first was affected by the pandemic but then eventually, rose higher because of the rise in the e-commerce industry. The e-commerce industry made a maximum profit during this time because people preferred the online mode of shopping and buying other essential goods due to the fear of the spread of the virus which has taken away numerous lives.
United Parcel Service Inc. (NYSE: UPS): Earnings and Latest Statistical Data of the Firm
The company earned better than expected this year. The revenue of the firm grew by as much as 16% and is now $21.24 billion (third-quarter earnings). Also, there was an increase of 10% in the income per share ($2.28 per share). Somehow, there is a difference between delivering the parcels to home and delivering them for business purposes. Business-related parcels always bring in better profits as compared to home delivery parcels and that is the only place where the e-commerce industry had to face a minor downfall.
United Parcel Service Inc. (NYSE: UPS):
- 52 week Range: $82.00 – $178.01
- Average Volume: 3,767,665
- Market Capital: $133.982B
- Average Dividend and Yield: 04 (2.61%)
The dividend of the company is good enough and now, that the company has earned well this year, it is quite sure that the dividend will remain stabilized and will eventually grow more to give better profits. The growth of the dividend over the years has also increased consistently.
Overall, the company majorly benefitted because of the increase in online shopping wherein people avoided shopping physically in stores and shops due to the coronavirus. The major rival of this firm FedEx also made huge benefits as it deals in the same business.
An Investment in UPS Right Now: A Good or a Bad Decision?
There is no doubt in the fact that UPS has made great benefits in the past year and since the e-commerce industry is blooming well, so there are very high chances that this firm will also rise in the upcoming time. The growth of the company has been quite well but still, it is not fit by all means for investing. If we consider its dividend, then the shareholders can invest in the firm but overall, there are some better companies to invest in. As in the case of UPS, the investors can wait for some more time and target the growth of the company, i.e. whether the company keeps the same pace of growth or faces ups and downs and only then, make a decision upon investing.