If the Fed Keeps Cutting Interest Rates, This Stock Could Be a Winner

UPS (NYSE: UPS) continues to struggle through a difficult period. The small package delivery market is over capacity, pressuring pricing power at a time when a weak economy is encouraging customers to shift to cheaper delivery options. It all adds up to a difficult period for UPS, and the company will end 2024 with significantly lower earnings than management anticipated at the start of the year. UPS will likely be a big winner if interest rates head lower. Here's why.Interest rates are affecting not only UPS' end markets, but also its business model. CEO Carol Tome's tenure has been characterized by her admonishment of the "better not bigger" operating framework.In plain English, this implies focusing on targeted deliveries rather than chasing volume growth. This approach colors the company's structure and competitiveness in its end markets. The latter is the key to understanding why UPS needs lower interest rates. I'll return to that point in a moment. First, a few words on the cyclical benefit of lower rates.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool