Jim Cramer's EV Secret Tip: United Parcel Service Under Closer Examination

Jim Cramer, the well-known financial expert, recently compiled a curated list of nine exclusive "YEV" stocks from the S&P 500. His focus is on the categories of yield, earnings growth, and value. Among the selected stocks is United Parcel Service (UPS), which is viewed with mixed feelings in his assessment. UPS ranks a notable third on this list and is highlighted by Cramer due to its challenging cost structure and uncertain earnings prospects. Although there are concerns regarding inflationary pressures and union negotiations, Citi analysts are optimistic about transport. Interestingly, Wells Fargo recently raised UPS's price target from $134 to $142, assuming that favorable trends in the third quarter could support price and volume increases. UPS itself is working on a strategic realignment by reducing staff and investing in new technologies to enhance efficiency. Despite challenges, this makes the company an intriguing candidate in the logistics sector. However, UPS must prove itself. The market is currently leaning heavily towards AI stocks, which, according to insiders, promise short-term potential for quick returns. Therefore, investors seeking alternatives might find it worthwhile to consider adding a more affordable AI company to their portfolio. Amusingly, the atmosphere is subtly underpinned by investor expectations in October, a historically promising month. Whether the excitement is indeed sparked in a popular sector like United Parcel Service's stock remains to be seen.