(NYSE: UPS) operates in a highly cyclical business, so it's no surprise its revenue came under pressure last year as the economy slowed down. Last year was made worse by protracted labor contract negotiations that led to customers diverting delivery volumes away from UPS and into the arms of competitors.
On the other hand, the stock's valuation is attractive, and a 4.5% dividend yield is nothing to sneeze at. Is UPS stock worth buying now, or should it be avoided? Here's the lowdown.
The company's latest results and guidance were not good, and investors knocked the stock back after getting the news. Fourth-quarter revenue declined by 7.8%, taking full-year revenue down by 9.3%. Meanwhile, full-year adjusted income fell by nearly 29%, with its U.S. domestic package segment profit down a similar amount and the industrial segment profit down almost 26%.
Source Fool.com