Skip to content

United Parcel Service, Inc.

UPS position long Paul Isaac

Thesis

The investor is long on UPS due to its strong free cash flow yield of 6% to 7% and the difficulty of replicating its extensive and profitable delivery network. They see UPS as a beneficiary of the trend towards e-commerce, contrasting it with Amazon's challenges in maintaining profitability.

Did it work?

inconclusive confidence: low

No price performance or time horizon is provided, so the return cannot be assessed. The thesis rests on a durable FCF yield and network moat, neither of which can be confirmed or refuted with the information given.