5 Most Profitable Industrial Stocks Now

4. United Parcel Service, Inc. (NYSE:UPS)

Number of Hedge Fund Holders: 47

Latest TTM Net Income: $8.56 billion

Established in 1907, United Parcel Service, Inc. (NYSE:UPS) originated as the American Messenger Company with a focus on telegraphs. Over time, it has evolved into a Fortune 500 company and is now one of the largest shipping couriers globally.

In early November, United Parcel Service, Inc. (NYSE:UPS) made an announcement confirming the successful completion of its acquisition of MNX Global Logistics, a leading global provider of time-critical logistics services. The transaction was finalized on November 2, 2023, after obtaining all necessary regulatory approvals. This strategic acquisition enhances UPS’s capacity for time-critical logistics, with a particular focus on serving healthcare customers across the United States, Europe, and Asia.

As of the close of Q3 2023, 42 hedge funds tracked by Insider Monkey owned stakes in United Parcel Service, Inc. (NYSE:UPS), compared with 47 in the previous quarter. The consolidated value of these stakes is more than $1.8 billion.

In its Q3 2023 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and United Parcel Service, Inc. (NYSE:UPS) was one of them. Here is what the fund said:

“A higher-for-longer rate mentality taking hold was a headwind for economically sensitive stocks. Rising wages have been one of the main drivers of inflation, and this has proved to be a sticky area, keeping the Fed’s attention and weighing on share prices. For example, United Parcel Service, Inc. (NYSE:UPS) renegotiated a wage increase for its union-backed workforce this summer, which weighed on margins that were already being constricted by slowing volumes. While the new union deal will dampen profits over the next 12 months due to the front-end-loaded nature of the new five-year contract, management gained increased flexibility to deploy automation, which we think should further enhance UPS’s strong competitive position and provide a long-term tailwind to profitability.”