This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

UPS on Mend, but Holiday View Unclear

ATLANTA ( TheStreet) -- Like the economy, UPS (UPS - Get Report) has recovered during 2009, but recently it seems to have stalled a bit.

The largest overnight package carrier, which at any moment has 6% of U.S. GDP and 2% of world GDP in its system, doesn't have a clear signal to offer on which way the holidays will go. It is hiring holiday workers at a pace slightly below its norm. And it predicts a long, slow recovery.

UPS shares reflect the caution. They have climbed 16% this year, slightly less than the 18% climb of the S&P 500. Investors greeted the company's Oct. 22 earnings report with a yawn, as shares closed that Thursday at $57.10, exactly the same price where they closed the day before. Shares were trading Tuesday morning at $54.26, down 26 cents.

On the company's earnings call, CFO Kurt Kuehn said the holiday outlook from customers is unclear, with a "wide divergence of opinions. We're seeing some of the brick-and-mortar players be fairly conservative, but of number of dot-coms see substantial increases." He said UPS will hire about 50,000 temporary holiday employees, "a little below what we normally do."

UPS won't say how many holiday temps it hired last year, when it was busily cutting employment, but in 2007 it hired about 60,000. Holiday hires typically are recruited at various sites including the UPS Web site. Normally, the fourth quarter is the company's most profitable: in the fourth quarter of 2007, net income was a record $1.1 billion.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
FDX $164.59 0.00%
UPS $96.59 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs