Where Will UPS Be in 3 Years?

The short answer to the question in the headline is that United Parcel Service (NYSE: UPS) is likely to be in a better place in a few years. Still, the extent of the improvement is debatable, and the result will significantly affect the kind of return investors can expect from the stock. Here's what you need to know about investing in UPS.The central argument here is that the underlying improvements in the business, and those that will drive its earnings growth over the long term, are being obscured by a combination of near-term headwinds in its end markets, strategic operational decisions (notably the conscious decision to reduce Amazon deliveries), and the need to keep paying out $5.5 billion in dividends.There's little UPS can do about the first issue, its end markets. The second issue -- Amazon volume reduction -- is sensible, because it aligns with management's strategy of shifting to higher-margin deliveries to optimize its network.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool