UPS: A long-term opportunity in the market's disfavour?

United Parcel Service shares $UPS have weakened 20% over the past year and are trading near a 52-week low. Yet the company is undergoing strategic changes that could ensure its long-term growth.

1. Attractive valuation and record dividend yield

-$UPS is trading below its five-year averages in key valuation metrics.

- The dividend yield of 4.8% is near an all-time high and beats even the financial crisis.

2. Strong competitive advantage

-$UPS has a global logistics network that neither Amazon nor FedEx has been able to replicate.

- Its extensive infrastructure (aircraft, sorting centres, distribution hubs) provides a strong barrier to entry for competitors.

3. Strategic change: move away from Amazon

-$UPS reduces its cooperation with Amazon by 50%, thereby focusing on more profitable segments (e.g. healthcare).

- While this move may reduce revenue in the short term, it should improve margins and overall profitability.

Investment view

$UPS is currently facing skepticism on Wall Street, but strategic decisions suggest the company is modernizing its business and getting stronger over the long term.

For value- and dividend-focused investors, it represents a $UPS an interesting opportunity - low valuation, strong market share and a commitment to optimizing profitability. If the transformation is successful, UPS could be significantly stronger in the coming years.