UPS

Analysis of UPS share price

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Do you plan to invest in UPS shares soon and therefore wish to obtain more information on this American company? Through this article dedicated to this company we offer you information that could prove to be essential for your analyses of the UPS share price including details on this group’s activities, its major competitors, its recent partnerships and the factors that should be taken into account for your fundamental analysis of this asset.

Elements that can influence the price of this asset:

Analysis N°1

Firstly, we would carefully monitor the data concerning regulations relating to the transport industry, particularly lorries, and notably the legislation on border crossings and CO2 emissions.

Analysis N°2

Any partnerships the group implements on an international level should also be carefully monitored as they can enable UPS to directly enter new activity sectors.

Analysis N°3

It is also vital to follow changes in the demand relating to online purchases and e-commerce in general.

Analysis N°4

You should also attentively follow new entries in this activity sector that could boast lower operating costs with cheaper employment.

Analysis N°5

Regarding the international activities of this company we would also carefully monitor movements in the currency exchange rates that could impact its competitiveness on an international level.

Analysis N°6

Finally, we would also follow movements in the price of fuel, and particularly the price of petrol on which depends the activities of UPS.

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General presentation of UPS

We shall now examine the UPS Group a little more closely with a detailed presentation of this company and its activities on the market. In fact, it is important to know how this company generates its revenue in order to best understand its future challenges and growth perspectives.

The UPS Group, or United Parcel Service is an American company that exercises its activities in the parcel transport service. More precisely, UPS is actually the leader in this activity sector worldwide. It also provides logistical services.

To better understand the activities of the UPS Group it is possible to divide them according to the turnover they generate and how they do so:

  • The courier, messenger and express delivery services in the United States alone generates over 62.7% of this group’s turnover, notably the transport and delivery of letters, documents and small packets.
  • The international messenger, courier and express delivery services represent nearly 19.2% of this group’s turnover.
  • Finally, the supply of logistical and transport services generates nearly 18.1% of the UPS Company’s turnover.

At the end of 2019, the United Parcel Service boasted a fleet of 601 airplanes as well as 125,000 land vehicles including cars, vans and tractors, as well as over 52,000 containers.

This group completes the major part of its activities in the United States.

Analysis of UPS share price
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The major competitors of UPS

We shall continue with information on the activity sector in which UPS operates with a summary presentation of its major competitors on the market representing companies that could represent a threat:

Fedex Corporation 

Firstly, the American group Fedex is also an airline company specialised in international freight transport. It is based in Tennessee and is a direct competitor of UPS. Its name actually stands for Federal Express.

DHL

The DHL Company, for Dalsey, Hillblom and Lynn International, is also specialised in the transport of packets and parcels and is based in the United States. It is owned by Deutsche Post, the German postal group. The Deutsche Post DHL Group is actually the largest logistics company worldwide and operates in over 220 different countries and territories. This group transports around 1.3 billion parcels and packets every year.

GeoPost

Finally, it is also important to monitor the third major competitor of the UPS Company, the international holding company belonging to the French La Poste group, GeoPost. This company combines the express parcel activities of the group in Europe and around the world and its registered office is situated in Issy Les Moulineaux. GeoPost currently unites its various European brands under the communal name of the DPD Group.


The major partners of UPS

After studying the major adversaries of UPS, we shall now look at some examples of this company’s allies by examining some recent partnerships that this American group has implemented with other companies:

Wingcopter

The first partnership we shall examine here was created in 2020 with the Wingcopter Company which is a German start-up. The two groups signed this partnership agreement with the objective of obtaining the certification necessary for German manufactured devices that would enable the use of a new generation of delivery drones, quieter and with increased usability options. Through this partnership the company’s subsidiary, UPS Flight Forward, or UPSFF, would be responsible for the administrative steps necessary to obtain authorisation for these future drones to be certified for use in different delivery tasks on American territory. It should be noted that UPSFF has already obtained the authorisation necessary to use delivery drones in aerial corridors.

Free (Iliad)

Another partnership, older this time, was signed in 2010 with the group Free. In fact, UPS was the chosen transporter for the delivery of Freeboxes to the subscribers of Free.

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Frequently Asked Questions

What is the principal market where the UPS share price is quoted?

At present, the UPS share price is of course quoted on the NYSE American stock market or New York Stock Exchange, more precisely the Main Market of this financial marketplace. But it is also important to note that the UPS Group is also included in the composition of the Dow Jones Industrial Average Index due to its high stock market capital, as with other large American companies.

How to complete a technical analysis of the UPS share price?

Apart from completing a fundamental analysis of the UPS share price as previously described in this article you should of course also implement a technical analysis of this asset. For this you will use the stock market charts to display and interpret the stock market technical indicators such as those for trends, volatility, and fluidity among others.

Where to buy UPS shares or invest in the price?

There are several different ways to access UPS shares and other American shares online. You can use a traditional stock market placement solution that will enable you to invest in the U.S. markets, or financial derived solutions that reproduce the prices and rates of the underlying assets and enable you to speculate on their rise or fall depending on movements on the stock markets.

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