Will UPS Stock be Helped Today by New Ad Campaign?

UPS launched a new campaign over the weekend geared toward letting businesses know it is more than just a package delivery service.
By Amanda Schiavo ,

NEW YORK (TheStreet) -- Over the weekend United Parcel Service Inc. (UPS) - Get Report launched a new aid campaign designed to show the company is more than just a package delivery service, the Wall Street Journal reports.

Using its new slogan "United Problem Solvers" UPS is looking to emphasize that it can continue to provide services to businesses even as the global supply chain grows more complex.

Shares of UPS are higher by 0.58% to $101.18 at the start of trading on Monday morning.

"It does signal a way to look differently at UPS and what we can offer, instead of just thinking of our capabilities of making shipments from point A to point B," UPS VP of customer communications Maureen Healy told the Journal.

UPS' new ad showcases some of the company's offerings including temperature sensitive health-care solutions, its ability to help grow small businesses, and expertise in e-commerce for retailers.

"It's very hard to break through to have people think differently about UPS, because they think they know what they need to know about UPS. While very well known, we've got to provide additional meaning to that," Alda Abbracciamento, world-wide managing director at ad firm Ogilvy & Mather, who worked with UPS on the campaign told the Journal.

Insight from TheStreet's Research Team:

UPS is a core holding of Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. During the most recent weekly roundup, this is what Jim Cramer, Portfolio Manager & Jack Mohr, Director of Research - Action Alerts Plus had to say about the stock:

Shares traded flat this week on little news. Its recent dividend raise - 9% to 73 cents per share - highlights the strength of its balance sheet and cash position. Recall - it is also buying back $15 billion worth of stock over the coming three years. The new annual dividend of $2.92 a share represents a 2.9% yield, compared with the 2% yield for the S&P 500.

UPS has either increased or maintained its dividend for more than four decades. Beyond the capital allocation story, we see several positive tailwinds working for the company this year: lower oil, price increases and continued momentum in e-commerce trends.

That being said, we are disappointed by management's inability to execute in its latest quarter and have developed an increasingly cautious view on the name.

Jim Cramer and Jack Mohr, 'Weekly Roundup' originally published on 3/6/2015 on ActionAlertsPlus.com.

Want more information like this from Jim Cramer and Jack Mohr BEFORE your stock moves? Learn more about ActionAlertsPLUS.com now.

Separately, TheStreet Ratings team rates UNITED PARCEL SERVICE INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate UNITED PARCEL SERVICE INC (UPS) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, premium valuation and poor profit margins."

You can view the full analysis from the report here: UPS Ratings Report

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