Circle Internet Group stock falls after first downgrade
ATLANTA - UPS (NYSE:UPS), a prominent player in the Air Freight & Logistics industry with annual revenue of $91.07 billion, has introduced UPS Global Checkout, a service designed to provide transparency for online shoppers regarding international customs fees and duties at the time of purchase. This service aims to eliminate the unexpected costs that consumers often face upon delivery of international goods. According to InvestingPro analysis, UPS maintains a strong financial health score, positioning it well for this service expansion.
The new offering is an integrated part of UPS’s shipping technology, making it the only global carrier to guarantee a landed cost solution for international shipping. It is available in 43 origin countries and delivers to over 200 destinations worldwide. The service is expected to assist businesses in expanding their global reach by simplifying the complexities of international shipping. With a significant dividend yield of 5.97% and a 15-year streak of dividend increases, UPS demonstrates strong shareholder returns while investing in innovation. For detailed dividend analysis and more insights, consider exploring InvestingPro, which offers comprehensive financial metrics and expert analysis.
Kate Gutmann, EVP and president of International, Healthcare and Supply Chain Solutions at UPS, stated, "With UPS Global Checkout, we’re making international shopping around the world as easy as buying in-store." She emphasized the benefits of full cost transparency and the elimination of surprise charges, which are likely to enhance customer satisfaction and encourage repeat business.
Customs duties, taxes, and fees have been a significant barrier for international e-commerce consumers. A survey indicated that 41% of U.S. and U.K. shoppers were hesitant to make international online purchases if duties and taxes were not clearly presented at checkout.
UPS Global Checkout addresses this issue by using artificial intelligence to calculate the correct duties and taxes based on the items in the shopping cart, thus providing customers with a guaranteed total landed cost before they complete their purchases.
In addition to UPS Global Checkout, UPS offers other tools such as UPS Export Assure and UPS Paperless® Invoice, which further streamline the cross-border e-commerce process for businesses.
The launch of UPS Global Checkout is part of the company’s broader strategy, which focuses on customer-first, people-led, and innovation-driven approaches. With a reported revenue of $91.1 billion in 2024 and a workforce of approximately 490,000 employees, UPS continues to pursue its commitment to reducing its environmental impact and supporting global communities. Currently trading near its 52-week low, InvestingPro analysis suggests the stock is undervalued, with strong fundamentals including a healthy return on equity of 34% and stable profit margins. Discover more detailed insights and access comprehensive Pro Research Reports covering UPS and 1,400+ other top stocks through InvestingPro’s premium service.
This report is based on a press release statement from UPS.
In other recent news, Dexterity Inc., an AI robotics startup, achieved a valuation of $1.65 billion following a $95 million investment round with participation from Lightspeed Venture Partners. This brings Dexterity’s total capital raised to nearly $300 million, with strategic contributions from Sumitomo Corp. Meanwhile, United Parcel Service Inc. (UPS) reported revenues of $91.1 billion in 2024 and announced a regular quarterly dividend of $1.64 per share for its Class A and Class B shares, demonstrating its commitment to shareholder returns. UPS also welcomed Kevin Clark, CEO of Aptiv PLC, to its board of directors, enhancing its technological expertise.
Additionally, Raymond James reaffirmed a Strong Buy rating for UPS, maintaining a price target of $145.00, citing the company’s strategic shift to reduce Amazon-related volume by half by 2026. Conversely, Loop Capital downgraded FedEx stock from Buy to Hold, reducing its price target to $283.00 due to ongoing trade tensions. The downgrade for FedEx comes amid the company’s plans to sell its less-than-truckload trucking business, FedEx Freight, which could potentially counterbalance some negative impacts. These developments highlight significant strategic moves and financial updates from key players in the logistics and technology sectors.
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