United Parcel Service (UPS) - Get Report shares rose Wednesday after the package-delivery giant said it planned to hire more than 100,000 seasonal employees thanks to an expected increase in package volume from October through January.
“We’re preparing for a record peak holiday season. The covid-19 pandemic has made our services more important than ever,” Charlene Thomas, chief human resources officer of the Atlanta company, said in a statement.
“A large number [of the 100,000] will move into permanent roles after the holidays.” UPS currently has 528,000 employees.
UPS shares recently traded at $160.45, up 2.6%. They have climbed 37% year to date.
“The company is filling full- and part-time seasonal positions – primarily package handlers, drivers, driver-helpers, and personal vehicle drivers … in thousands of locations across the country,” UPS said.
“Over the last three years, about 35% of people hired by UPS for seasonal package handler jobs were later hired in a permanent position when the holidays were over.”
"All three global integrators - Deutsche Post, FedEx and UPS - have had a pretty good pandemic so far. The market has got overexuberant about e-commerce growth," he said.
The investment firm expects business-to-consumer shipping to grow about 20% in 2020 thanks to the coronavirus pandemic. The firm says that's already reflected in the ascent of FedEx and UPS stock this year.
But UPS was trading at 21 times estimated 2021 earnings, a 32% premium over its 10-year history. For FedEx, Berenberg sees a wider profit margin relative to UPS.
He set a price target of $130 for UPS.