$UPS Tape Reports
Per Ticker.id: $UPS Tape Reports — 31 podcast mentions across 9 podcasts (30 days), latest 2026-08-25 20:30 UTC.
Hey everyone, just a quick reminder. If you want to get in an email to us, send it to us at podcasts@fool.com. That's podcasts with an S. We'll also put the email in the description for the show. As always, keep it short enough we can read on air, keep it Foolish, and we can't give personalized advice so we don't get in trouble with the SEC. So today's question comes from Sterling Clark. And Matt, he actually named you personally, so we wanted to make sure that you were on the show when we did this. Question is, hi Fools, what does Matt Frankel think about UPS stock as a value stock or a value trap? A little bit of a theme here today. Sterling says he works at UPS and he can see that they're working on remodeling their buildings in order to improve sorting efficiencies. It still has an attractive dividend yield, but the other hand, Amazon keeps indicating it wants to take UPS's lunch. Do you buy the turnaround story? Matt, we'll start with you since it was directed at you, and Rachel, if you have any thoughts, you can share them as well.
Tyler Crowe — Motley Fool Hidden Gems Investing · Dick’s Sporting Goods has a Foot Locker Problem · 2026-08-25Yeah, I'm not surprised that was directed to me. I love a good value stock. Everybody knows that. But what the listener is referring to is what UPS calls its network reconfiguration program. And it is showing up in the numbers. UPS expects almost $3 billion of program benefits for this full year. Unfortunately, part of it's cutting about 30,000 jobs, operational positions specifically, as the network becomes both physically smaller and a lot more automated, which is what he was referring to there. So, I'm not terribly worried about the Amazon part. UPS, they've already removed a ton of what they call low-quality Amazon volume. That's not where they make their money. You don't make your money by, you know, free 2-day shipping. You make your money from, you know, the medical equipment and, you know, more specialized forms of moving things from one place to another. So the way I would put it is Amazon didn't really steal UPS's lunch. UPS just gave back the part that it didn't really want to eat. In Q2, UPS raised its guidance. They posted double-digit growth in operating profit. Their dividend yield is 6.4%, which might sound attractive. It represents about 98% of the company's free cash flow. That's a pretty high payout ratio. They haven't raised their dividend every year, but they haven't cut it for 27 consecutive years. That's a pretty big history they want to maintain. They're going to need some serious free cash flow growth over the next few years to justify keeping it where it is. I wouldn't go so far as to call this a dividend trap. There are plenty of dividend traps in the market. I wouldn't say this is one of them. If they can grow their premium shipping volume, meaning the non-Amazon parts of the business, while making the network more efficient, which they're clearly doing, it could end up being a great value here. But that's a big if, and that's why it's trading where it is right now.
Matt Frankel — Motley Fool Hidden Gems Investing · Dick’s Sporting Goods has a Foot Locker Problem · 2026-08-25Slightly related, there was a story on CNBC today about UPS investing heavily in things like pharmaceutical, uh, and cold chain logistics, uh, a little bit related to, you know, shipping GLP-1 drugs and stuff like that. I, I assume that's going to be part of that, uh, as well, Rachel, don't you think?
Tyler Crowe — Motley Fool Hidden Gems Investing · Dick’s Sporting Goods has a Foot Locker Problem · 2026-08-25Yeah, that's absolutely the case. Um, one of the things that UPS has really focused on— I mean, this is adding billions to their growth quarter is specialized shipments like weight loss and diabetes medications. And these are, you know, high-value drugs. They require very precise temperature-controlled refrigeration, premium tracking sensors from factory to pharmacy. And so by routing these high-margin medical packages through their newly automated facilities, UPS can generate significantly more profit per box. And that building remodel isn't just a cosmetic upgrade. You know, they're really shifting away from old-school manual sorting, automated hubs. This is obviously something that they've been doing for a while, but running an automated sorting building. It's about 30% cheaper per package than a traditional one. And so the healthcare logistics piece is, is a really, really interesting one kind of within that broader shift. But upgrading these facilities takes a lot of cash. They've committed billions more to expand just their global healthcare shipping network over the next few years. You know, they, they pay over $5 billion a year out in dividends. I, I don't think that UPS is a value trap. I think it's another one of the turnaround stories we've been talking about today. There's a lot of moving parts. You know, on the one hand, the network is getting smaller, it's getting leaner, it's getting more efficient, but the automation side only saves you money if, if they're, you know, if these buildings are actually full of packages. If the broader economy slows down, retail shipping drops, these, uh, very expensive, uh, equipment sorting machines might sit idle. So strategy makes sense, but I think there's a bit of a trade-off that's happening right now. That said, I think the fact that they are leaning more into these higher margin business lines, specifically healthcare logistics, which just broadly speaking tends to be more resilient even in difficult economic periods. I think that's a very smart strategy for the long run.
Rachel Warren — Motley Fool Hidden Gems Investing · Dick’s Sporting Goods has a Foot Locker Problem · 2026-08-25The path is there. It just seems like getting there completely unscathed without having to cut its dividend or, you know, any other financial shenanigans along the way is gonna be the real challenge here for UPS. Maybe not the smoothest path. As always, people on the program may have interests in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. All personal finance content follows Motley Fool editorial standards and is not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only. To see our full advertising disclosure, please check out our show notes. Thanks to our producer Dan Boyd and the rest of The Motley Fool team. For Matt, Rachel, and myself, thanks for listening, and we'll chat again soon.
Tyler Crowe — Motley Fool Hidden Gems Investing · Dick’s Sporting Goods has a Foot Locker Problem · 2026-08-25UPS's earnings are going to be what they were like 3 years ago, and Nike's where they were 15 years ago. And, you know, I was just looking at Thermo Fisher, great growth company over the years, it's been flattish earnings for a couple years. But I agree with you in general. I mean, you probably have to go back to like maybe '68, '72, like hyperinflation, oil crisis, Vietnam, Vietnam. But, you know, look, I think it always seems like we've just been through the worst or the most or the most extreme. I always go back to Byron Wien, the Morgan Stanley and later Blackstone strategist.
Michael Santoli — The Compound and Friends · How to Play the Money Game with Michael Santoli · 2026-08-21So it's hard to say one, any one individual. There's been many, many great leaders and I've had many great mentors along the way. I'd like to look at it from, as a leader, I admire the logistics operators. Healthcare is not delivering packages, but we can learn a lot from organizations like UPS and FedEx, they have really figured out that the customer doesn't care how complicated things are. What's most meaningful to them is they get their package when they want it, or the recipient of a package they send gets it when they need that recipient to get it. So patients want exactly that from us. You know, healthcare's got a long way to go. Unfortunately, healthcare We typically as an industry are slow learners and we're slow adopters to change and new technologies. But I think when we look at accessibility, we absolutely have to be able to leverage what all those logistics operators have learned and be able to accept patients more quickly and more seamlessly. We need to be able to care for them more quickly and more seamlessly, and we have to be able to provide them with a much better experience because what we unfortunately often don't recognize is the fact that people come to us when they have to, not because they want to. And I think the problem is that the only thing that patients actually come to us for, which is a happy and a happy event and something they look forward to, is when a child's being born. You know, other than that, our customers, our patients are in pain, and they're anxious and they don't necessarily want to be with us. So we need to be able to make that as easy and seamless as possible with the best possible experience that they can have.
Mark Sparta — Becker’s Healthcare Podcast · Radical Accessibility: Expanding Healthcare Access and Capacity · 2026-08-20All right, Josh, the last question I want to ask you is a little different, and it's like a hot topic at the moment, hotly debated, on which I think you'll have an opinion, even if it's not exactly in your wheelhouse or what you're doing at ThinkLabs, which is there are tens of gigawatts of data centers now that are being planned with behind-the-meter generation. And increasingly, because of challenges in grid connection and all the more Terra Pretoria and stuff like that, uh, that behind-the-meter generation is acting as a bridge to a long-term interconnect. And so these are essentially— they're operating these massive microgrids, or they're planning to operate these massive microgrids, right? And it's comprised usually of some kind of gas generation or, or a fuel cell. Maybe there's a UPS, maybe there's a battery, but that's basically it. But they're really— they're operating a microgrid. Right. And we've been talking about all of the complexities of operating the macro grid. And I wonder, you know, the debate that I think is raging right now is like, is that harder than it seems? Basically, um, is it going to be operationally very difficult to run one of these very large loads that probably doesn't— it has like a spiky load profile off of this gigantic microgrid. From what you know about operations of a macrogrid, do you think it's going to be easy or hard? I mean, or, you know, what's the nuance here?
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