United Parcel Service said it plans to hire more than 100,000 seasonal employees as it gears up for the peak holiday season. The world’s largest package delivery company stated that the seasonal hiring will help meet the expected annual increase in package volume this year. Shares closed 2.1% higher on Wednesday.
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United Parcel Service’s (UPS) Chief HR Officer Charlene Thomas said, “We’re preparing for a record peak holiday season. The COVID-19 pandemic has made our services more important than ever.”
The company noted that 35% of the total seasonal employees hired in the past three years were later hired for permanent positions. About one-third of the current 123,000 staff had started their career as seasonal employees, UPS said. (See UPS stock analysis on TipRanks).
On August 21, Goldman Sachs analyst Jordan Alliger raised the stock’s price target to $168 (5.1% upside potential) from $159 and reiterated a Buy rating. Alliger revised the price target to reflect a faster than expected recovery in UPS margins. The analyst also expects better pricing dynamics for the company in the long run.
Currently, the rest of the Street is sidelined the stock. The Hold analyst consensus is based on 5 Holds, 6 Buys, and 4 Sells. With shares up nearly 36.5% year-to-date, the average analyst price target of $140.54 implies downside potential of 12.1% from current levels.
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