UPS Entry & Long Target - Trading Strategy
UPS is a terrific company that provides a valuable service. Currently the P/E ratio is very high, and with current earnings it is tough to justify this in a portfolio as an aggressive strategy. With that said, as outlined within the chart - if price offers confirmation off S1 we will find a nice entry to target the top of the wedge following that.
Keep in mind this is a terrific investment looking out long term. As outlined in two publications, they have now sold the Freight Division for $800 million and will be concentrating efforts on the legacy parcel division which is the most profitable, undertaking a "better rather than bigger" strategy.
I wish nothing but the best for this incredible company and offer the following two sources for those interested in reading about the selling the LTL division to TFI International:
“We see compelling opportunities to improve yield, efficiency, and...productivity, both near and long-term,” TFI Chairman and Chief Executive Officer Alain Bédard said in a Monday call with analysts.
"The acquisition caps a dramatic period of growth for TFI that has seen the business buy dozens of companies. Many were small operators, but the deals also include the 2016 acquisition of XPO Logistics Inc.’s truckload division, and the purchases of trucker Vitran Corp. and of truckload carrier Transport America Inc. in 2014.
Mr. Bédard said the truckload business at UPS Freight, which makes up about 10% of the unit‘s revenue, will be blended into TFI’s existing truckload operations while the main LTL segment, including 147 terminals and 50 leased sites, will operate on its own."
https://blog.translogisticsinc.com/tli-update-ups-freight
https://www.wsj.com/articles/trucker-tfi-international-aims-to-boost-margins-at-ups-freight-11611696296
Keep in mind this is a terrific investment looking out long term. As outlined in two publications, they have now sold the Freight Division for $800 million and will be concentrating efforts on the legacy parcel division which is the most profitable, undertaking a "better rather than bigger" strategy.
I wish nothing but the best for this incredible company and offer the following two sources for those interested in reading about the selling the LTL division to TFI International:
“We see compelling opportunities to improve yield, efficiency, and...productivity, both near and long-term,” TFI Chairman and Chief Executive Officer Alain Bédard said in a Monday call with analysts.
"The acquisition caps a dramatic period of growth for TFI that has seen the business buy dozens of companies. Many were small operators, but the deals also include the 2016 acquisition of XPO Logistics Inc.’s truckload division, and the purchases of trucker Vitran Corp. and of truckload carrier Transport America Inc. in 2014.
Mr. Bédard said the truckload business at UPS Freight, which makes up about 10% of the unit‘s revenue, will be blended into TFI’s existing truckload operations while the main LTL segment, including 147 terminals and 50 leased sites, will operate on its own."
https://blog.translogisticsinc.com/tli-update-ups-freight
https://www.wsj.com/articles/trucker-tfi-international-aims-to-boost-margins-at-ups-freight-11611696296
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