UPS Gears Up for Holiday Season, To Hire 100,000 Plus Workers
United Parcel Service UPS has announced plans to add more than 100,000 seasonal workers throughout the United States, as it prepares for the busy holiday season. Even though the demand for online shopping has slowed down from the pandemic peak with the reopening of the economy, the figures are still higher than the pre-pandemic levels.
Moreover, additional workers are needed to ensure a repeat of UPS’ buoyant performance witnessed last year with respect to timeliness. Therefore, the decision to hire additional workers to meet the anticipated swell in package delivery demand is a prudent one.
UPS has made the process of hiring employees very easy and uncomplicated. The ease with which new personnel are enrolled is evident from the short 25-minute duration of the process (in most cases) wherein an applicant can fill out an online form and land a job.. Moreover, nearly 80% of seasonal workers do not need to even appear for an interview.
Openings are for full- and part-time seasonal positions, and will primarily attract package handlers, drivers and helpers for drivers. However, seasonal opportunities may lead to year-round employment at UPS. In 2021, nearly 35,000 seasonal workers got permanent positions following the end of the holiday season.
In connection with new recruitments, we expect UPS’ rival FedEx FDX to soon announce its plans for adding seasonal employees to its workforce. This comes with the anticipated annual increase in package volume that will begin in October 2022 through January 2023.
Last year, FDX added 90,000 workers to meet the surge in package volume during the holidays. We note that UPS and FedEx hire multiple temporary workers each year to move more parcels in the Oct-Jan period. This year, the problem of labor crunch may hurt both companies’ operations, thereby escalating costs. We expect investors to stay glued to the updates on the package delivery space as we head for the holiday season.
Both UPS and FDX currently carry a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the Zacks Transportation sector are Triton International TRTN and C.H. Robinson CHRW.
Triton is being aided by the gradual increase in trade volumes and container demand. TRTN expects container demand to remain strong throughout 2022. Measures to reward its shareholders through dividends and buybacks instill confidence in the stock .
Triton has an expected earnings growth rate of 22.4% for the current year. TRTN’s bottom line outpaced the Zacks Consensus Estimate in each of the last four quarters, the average being 7.5%. TRTN currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
C.H. Robinson is being aided by an improving freight scenario in the United States. Efforts to control costs also bode well. Measures to reward its shareholders instill confidence in the stock.
CHRW has a pleasant earnings track record. The bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters (missing the mark in the remaining one). The stock has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 17.6% upward over the past 60 days. C.H. Robinson currently carries a Zacks Rank of 2.
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United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
FedEx Corporation (FDX) : Free Stock Analysis Report
Triton International Limited (TRTN) : Free Stock Analysis Report
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