In this article, we discuss 5 best delivery stocks to invest in. If you want to read about some more best delivery stocks, go directly to 10 Best Delivery Stocks to Invest In.
5. United Parcel Service, Inc. (NYSE:UPS)
Number of Hedge Fund Holders: 38
United Parcel Service, Inc. (NYSE:UPS) provides letter and package delivery, transportation, logistics, and related services. It is one of the elite delivery stocks to invest in. On September 7, the company announced that it would be hiring more than 100,000 extra workers to support the anticipated annual increase in package volume that will begin in October 2022 and continue through January 2023. The hiring plans come as online shopping slows after a pandemic-induced surge but remains well above pre-pandemic levels.
On September 22, Barclays analyst Brandon Oglenski maintained an Equal Weight rating on United Parcel Service, Inc. (NYSE:UPS) stock and lowered the price target to $180 from $200, noting that macro read-through and global data suggest a rough ride this winter for the firm.
At the end of the second quarter of 2022, 38 hedge funds in the database of Insider Monkey held stakes worth $613 million in United Parcel Service, Inc. (NYSE:UPS), compared to 50 in the previous quarter worth $159.5 million.
In its Q2 2022 investor letter, Mayar Capital, 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:
“United Parcel Service, Inc. (NYSE:UPS) has been a beneficiary of the pandemic-related shift to e-commerce. Revenues increased 15% in the year, with strong leverage in the business boosting operating profit by al- most 67%. Management is focusing on a ‘Better not Bigger’ strategy for the business and divested the UPS Freight business early in the year. Mean- while, the company is expected to increase distributions to shareholders in 2022, from both dividends and share buybacks.”
4. Target Corporation (NYSE:TGT)
Number of Hedge Fund Holders: 46
Target Corporation (NYSE:TGT) operates as a general merchandise retailer in the United States. It is one of the top delivery stocks to invest in. The company has an impressive dividend profile. It has consistently paid a dividend to shareholders for the past fifty-four years. On September 22, the firm declared a quarterly dividend of $1.08 per share, in line with previous. The forward yield was 2.72%.
On August 1, JPMorgan analyst Christopher Horvers maintained an Overweight rating on Target Corporation (NYSE:TGT) stock and raised the price target to $190 from $180, noting that the reactions to downward revisions in the retail sector were turning more positive.
At the end of the second quarter of 2022, 46 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Target Corporation (NYSE:TGT), compared to 50 in the preceding quarter worth $2.95 billion.
In its Q2 2022 investor letter, LRT Capital management, an asset management firm, highlighted a few stocks and Target Corporation (NYSE:TGT) was one of them. Here is what the fund said:
“The Target Corporation (NYSE:TGT) operates retail stores that sell a variety of merchandise ranging from necessities such as food and hygiene products to discretionary products like children’s toys and electronics. The sale of this merchandise is done primarily through physical retail locations in all 50 US states. However, Target also sells its merchandise digitally through its online website which delivers merchandise to its customers in three ways: order pickup, drive up, and “Shipt”. The Target Corporation operates a single segment through 1,926 physical stores.
Target is one of the largest US brick-and-mortar retailers and has successfully adapted to the competitive environment in the age of Amazon. As of 7/15/2022, TGT shares are down 36% for the year and down 44% since their all-time-high last year. The business is experiencing issues that are temporary in nature and we believe that the shares present an attractive opportunity at current prices. Target performed exceptionally well during the Covid-19 pandemic and its aftermath. Unfortunately, the company was recently caught flat footed, as consumer preferences shifted towards more spending on services (such as travel), at the expense of physical goods. As a result, the company found itself with an excess of inventory which will likely pressure margins in the next few quarters (…read more)
3. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 67
Walmart Inc. (NYSE:WMT) engages in the operation of retail, wholesale, and other units worldwide. The firm is among the best delivery stocks to invest in. On September 20, the company announced that it had partnered with Firework to test livestream and immersive video experiences for retail. Under the deal, Walmart Connect will bring shoppable, short-form videos to digital properties while also making them available to advertisers.
On September 14, KeyBanc analyst Bradley Thomas initiated coverage of Walmart Inc. (NYSE:WMT) stock with an Overweight rating and a price target of $155, noting that the rating was underpinned by an outlook for defensive growth.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Walmart Inc. (NYSE:WMT), with 9.8 million shares worth more than $1.2 billion.
In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Walmart Inc. (NYSE:WMT) was one of them. Here is what the fund said:
“The pandemic has created challenges for businesses large and small; one major challenge for large essential retailers such as ClearBridge holdings Home Depot, Walmart Inc. (NYSE:WMT) and Costco has been ensuring adequate staffing to meet demand under trying conditions. All three instituted enhanced pay practices during the pandemic, with raises, unplanned bonuses and other benefits helping compensate employees for their efforts in a difficult environment. In September 2020 Walmart raised wages for 165,000 employees, including a number of entry positions to $15 an hour. It followed this in February with a raise for 425,000 workers that moved its average pay above $15 an hour.”
2. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 129
Uber Technologies, Inc.(NYSE:UBER) develops and operates proprietary technology applications worldwide. The company is one of the most prominent delivery stocks to invest in. On September 16, Uber Technologies, Inc.(NYSE:UBER) announced that there was no evidence the cybersecurity breach it endured touched on sensitive user data. It also said that all services of the firm, including Uber, Uber Eats, Uber Freight, and the Uber Driver app, were operational.
On August 23, Wolfe Research analyst Deepak Mathivanan maintained an Outperform rating on Uber Technologies, Inc.(NYSE:UBER) stock with a price target of $37, noting the firm remains a top idea in mobility.
At the end of the second quarter of 2022, 129 hedge funds in the database of Insider Monkey held stakes worth $5.3 billion in Uber Technologies, Inc.(NYSE:UBER), compared to 144 in the preceding quarter worth $8.5 billion.
In its Q2 2022 investor letter, RiverPark Funds, an asset management firm, highlighted a few stocks and Uber Technologies, Inc. (NYSE:UBER) was one of them. Here is what the fund said:
“Uber Technologies, Inc. (NYSE:UBER) is a global technology platform that enables the transportation of people and products across cities and countries. The company’s three main business lines are 1) Mobility where the company is the number one or two player in the app-based personal transportation market in 10,000+ cities globally, 2) Delivery- (Uber Eats in the US) home delivery of prepared meals, grocery, liquor, and increasingly general retail products in seven of the top ten GDP markets globally, and 3) Freight- the largest global marketplace for end-to-end freight solutions including one million digitally connected truck drivers. In the company’s most recent quarter, it grew gross bookings 35% year over year, consummated transactions with 115 million unique customers, completed 1.7 billion trips a month, and all three divisions were adjusted EBITDA positive (…read more)
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 252
Amazon.com, Inc. (NASDAQ:AMZN) engages in the retail sale of consumer products and subscriptions in North America and internationally. The firm features on the list of best delivery stocks to invest in. On September 21, the company announced that it would be expanding the renewable energy portfolio globally with an additional 2.7 gigawatts of clean energy capacity across 71 new renewable energy projects.
On August 29, Citi analyst Jason Bazinet maintained a Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) stock with a price target of $152, noting that the firm would face regulatory risks with buying Electronic Arts.
At the end of the second quarter of 2022, 252 hedge funds in the database of Insider Monkey held stakes worth $30 billion in Amazon.com, Inc. (NASDAQ:AMZN), compared to 271 the preceding quarter worth $48 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Amazon.com, Inc. (NASDAQ:AMZN) was one of them. Here is what the fund said:
“Amazon.com, Inc.(NASDAQ:AMZN) is the world’s largest retailer and cloud services provider. Shares of Amazon declined 35% in the quarter due to weaker-than-expected profits resulting from an overcapacity of resources coming out of COVID. We expect Amazon to grow into its retail capacity in the quarters to come, which would enable it to improve profitability accordingly. Amazon remains one of our largest holdings due to its durable competitive advantages with a leading position in multiple trillion-dollar markets with a long runway for growth (…read more)
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