This is one of my favorite setups for the year, so let’s get into it!

UPS has been on a steady decline since the beginning of 2022. That makes sense when you consider the pressure created during COVID, when people were spending stimulus checks like Monopoly money and buying TVs as if they were going out of style.

All jokes aside, this company has a ton of potential in my eyes. The leadership is not horrible, and UPS is becoming increasingly focused on automation and operating efficiency. That could allow the company to operate around the clock, reduce labor costs and ultimately generate more money.

Now, just because I recognize this does not mean I approve of replacing people with a hundred actuators—but we also have to be realistic about what is currently happening in society.

So, do I think UPS will eventually return to breaking all-time highs?

Ask yourself this: What could happen to a company that becomes significantly more efficient over time while also increasing the amount of money it generates?

UPS brings in nearly $100 BILLION in annual revenue, and it is not an overwhelmingly debt-heavy company.

That combination of revenue, automation and improved efficiency is exactly why UPS is one of my favorite long-term setups for the year.