Key Points
Shares of United Parcel Service (NYSE: UPS) have declined over 50% in the past five years amid challenging trade conditions and a drop in revenue for two of the last three years. The recent announcement that Amazon (NASDAQ: AMZN) is launching Amazon Supply Chain Services raises concerns as it introduces a significant competitor in the logistics market.
In response to these challenges, UPS is cutting its workforce by up to 30,000 jobs to improve profitability. Despite the threat from Amazon, industry analysts suggest that UPS remains a leader in logistics and is attractively priced at about 14 times its estimated future profits.
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