What does the expert below say about UPS $($United Parcel Services$)$

In this article, we will look into the $25$ most valuable logistics companies in the world in $2024.$ If you want to skip our detailed analysis, you can go directly to the $5$ Most Valuable Logistics Companies in the World in $2024.$

Logistics Industry: A Market Analysis

According to a report by Precedence Research, the global logistics market was worth $$7\mathrm{.}98$ trillion in $2022.$ The market is expected to grow at a compound annual growth rate of $10\mathrm{.}7\%$ from $2023$ to $2030$ and reach $$18\mathrm{.}23$ trillion in $2030.$ The market is rapidly shifting towards digitization and automation, driving companies to adopt technologies including the Internet of Things $($IoT$),$ artificial intelligence $($AI$),$ machine learning, and robotics. Another significant market trend is waterways transportation, which transports goods and passengers through water bodies. The demand for water transportation is increasing due to its cost$-$effectiveness and high carrying capacity. The growing e$-$commerce market, cross$-$border sales, and third$-$party operations have incited the growth of the logistics market.

Regionally, the market is poised for substantial growth all across the world. However, North America is expected to grow at the highest rate, driven by its well$-$developed infrastructure network and robust supply chain. Europe is also expected to grow at a significant rate over the forecasted period, fueled by its growing e$-$commerce sector, increasing research and development, skilled workforce, strong infrastructure, and growing reliance on logistics solutions.

Major Players in the Market

Some of the leading companies in the logistics market include United Parcel Service, Inc. $($NYSE:UPS$),$ FedEx Corporation $($NYSE:FDX$),$ and Deutsche Post AG $($OTC:DHLGY$).$

United Parcel Service, Inc. $($NYSE:UPS$)$ is a market leader in the logistics market. On January $10,$ Stifel analyst J$.$ Bruce Chan raised his price target on United Parcel Service, Inc. $($NYSE:UPS$)$ to $$190$ from $$180$ and maintained a buy rating. Over the past $3$ months, $8$ Wall Street analysts have given a buy rating on the stock. The average price forecast of the stock is $$161\mathrm{.}5$ and the high price target is $$191.$

The company also reported its earnings for the fiscal fourth quarter of $2023,$ recently on January $30.$ The company reported an EPS of $$2\mathrm{.}47$ and beat estimated by $$0\mathrm{.}01.$ Here are some of the comments from its earnings call:

$"$We continue to deploy transformative technology to increase efficiency within our warehousing facilities. The latest example is our state$-$of$-$the$-$art pick, pack, and ship center in Louisville, Kentucky, that we call UPS Velocity. We named it Velocity because it leverages robotics, automation, machine learning, and artificial intelligence to streamline fulfillment operations.

This facility is capable of processing over $350,000$ units per day and enables a best$-$in$-$class experience for our customers and their customers. Our customer first, people led innovation driven strategy is the foundation of our business. And our continued execution of the strategy enables us to exit $2023$ with momentum."

On January $14,$ FedEx Corporation $($NYSE:FDX$)$ announced the launch of the first$-$ever data$-$driven commerce platform, fdx$.$ The new commerce platform will offer end$-$to$-$end commerce solutions to businesses by streamlining the entire journey of the customers, providing companies with the necessary data to grow their demand and increase conversions. The fdx is set to officially launch in the fall of $2024.$ However, the platform is available for preview upon request.

Deutsche Post AG $($OTC:DHLGY$)$ is a leading Logistics Company in Germany. On February $8,$ the company announced that it had deployed a hydrogen truck by Paul Nutzfahrzeuge GmbH$,$ a special$-$purpose commercial vehicle maker. This truck is based on the Mercedes Benz Atego. It will be utilized at the Cologne location for distribution and line hauls. This hydrogen truck is the second truck that Deutsche Post AG $($OTC:DHLGY$)$ has recently deployed in Germany. The first vehicle is operating at the Cologne West facility for the Post and Parcel Germany Division.

$1.$ United Parcel Service, Inc. $($NYSE:UPS$)$

Market Cap as of February $9$: $$126\mathrm{.}02$ billion

United Parcel Service, Inc. $($NYSE:UPS$)$ tops our list of the most valuable logistics companies in the world in $2024.$ Founded in $1907,$ it provides shipping, logistics$,$ and supply chain services. As of February $9,$ United Parcel Service, Inc. $($NYSE:UPS$)$ boasts a market cap of $$126\mathrm{.}02$ billion.