Package delivery giant ' (NYSE: UPS) stock now yields more than 5% and trades almost 46% off its all-time high. Is this a buying opportunity or a value trap for investors interested in the stock?

Here's what you need to know before buying a discounted UPS stock.

With shares trading at around $128, UPS' price-to-earnings ratio comes in at 17.3 times the Wall Street analyst consensus estimate for 2024 earnings. That's an excellent valuation for a stock that Wall Street analysts believe will grow earnings by almost 20% in 2025. As such, UPS trades on 14.4 times its estimated 2025 earnings. In addition, management's three-year plan, outlined on its investor and analyst day in March, calls for adjusted operating profit to grow by a compound annual growth rate (CAGR) of 13% from 2023 to 2026.

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Source Fool.com