United Parcel Service (UPS +0.45%) is in the middle of a turnaround, which management says is about to hit an inflection point. The goal is to modernize the business to make it leaner and more profitable. There are many moving parts, with a key focus on fostering the right customer relationships. Which is why the company is investing $48 million in its temperature-controlled logistics operations. Here's what you need to know.
Amazon packages are out, medication delivery is in A big part of UPS' business overhaul has been to introduce new technology to make the company more efficient. That has required material investment and allowed the company to trim staff and sell off older, less efficient assets. But another part of the equation is the industrial giant's customer base.
Image source: Getty Images.
E-commerce is a big business, but UPS no longer wants to focus on just moving more packages. It is increasingly looking at how much profit it can generate from the packages it moves. This is why it has chosen to proactively reduce its relationship with Amazon (AMZN -0.70%). Amazon used UPS to ship many packages, but the profit margins on those shipments were very small. Instead, UPS wants to move fewer, higher-margin packages. This is exactly what the medical sector offers because medications often must be kept at specific temperatures throughout their shipping process.
This isn't a new initiative for UPS. It has been making this shift for a while now, and the results are clear. Even though its U.S. business revenues are falling, the profit it earns per piece it delivers is rising. This is the goal and a clear sign of progress in the company's turnaround effort.
Supporting the company's growth is the next step The company is already seeing success with its plans to expand in the drug delivery space. And it believes that the second half of 2026 will be the inflection point in its overall turnaround effort. However, management isn't done yet. It is looking to support long-term growth. Which is where the $48 million investment in UPS' temperature-controlled logistics system comes into play.
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This spending will support 27 of its facilities worldwide. This investment leans into an industry segment that not only offers high margins but that UPS expects to grow at a compound annual rate of 8.3% through 2033. GLP-1 weight-loss drugs are a recent, high-profile example of the opportunity, but the list of drugs that require refrigeration is quite long. UPS believes this could be a nearly $40 billion market by 2033.
UPS is still unloved UPS' turnaround has been a long process. Even if it is nearing the end, as management believes, Wall Street remains in a show-me mood. Which is why the stock's yield is a lofty 5.6%. If you are a long-term investor, you may want to take a closer look at the company and its growth-focused investment in temperature-controlled logistics.
As demand rises for specialized medications like GLP-1s, logistics companies including UPS and FedEx are adapting their strategies to be able to better ship and store those pharmaceuticals.
Most injectable GLP-1 medications, including Novo Nordisk's Ozempic and Wegovy and Eli Lilly's Mounjaro and Zepbound, require refrigerated storage for shipment.
The Covid pandemic put healthcare logistics at center stage in 2020, as the shipping of temperature-controlled vaccines quickly became a crucial part of keeping the virus at bay. And as more money has been poured into new pharmaceutical innovations, the transportation of those products have come under the spotlight.
Logistics companies are now investing millions of dollars and strengthening dozens of temperature-controlled facilities to tap into the market.
In June, UPS announced a new $48 million investment in temperature-controlled facilities as it sees a growing demand for critical treatments. According to Growth Market Reports, the demand for temperature-sensitive biologics is projected to grow at an 8.3% compound annual growth rate through 2033 and reach a market value of roughly $39.1 billion.
Obesity and diabetes drugs, meanwhile, have been booming in popularity. A July Gallup poll found that 11% of Americans take GLP-1 medications for weight loss purposes in 2026, up from just 3% in 2024.
But if they're not stored and shipped at the correct temperature, they risk losing their efficacy.
The Food and Drug Administration has warned that improper storage during shipping can affect the medicine's quality and recommends patients do not use GLP-1 drugs that arrive "warm or with insufficient refrigeration."
Other biologics, like some vaccines, insulin and antibiotics, also require specialized shipment to maintain efficacy. For logistics companies, that means ensuring the proper storage and movement every step of the way.
Bulking upHealthcare logistics have proven to be one of UPS' biggest opportunities. On an earnings call with analysts in April, CEO Carol Tomé said the company's global healthcare portfolio has gained market share every year since 2021, generating its first ever $3 billion healthcare revenue quarter in the first quarter of this year.
UPS President of Healthcare John Bolla told CNBC that the company is seeing more healthcare companies looking for partners to keep up with the volume.
"One of the biggest opportunities we see is supporting the shift toward more specialized therapies and more care delivered outside of traditional healthcare settings," Bolla said.
He said UPS is experiencing "rapid growth" in biologics, cell and gene therapies, though the biggest challenge is that the margin for error is small — even a brief stray from the correct temperature can ruin the medicines, Bolla said.
"But that's also what's creating such a significant opportunity in healthcare logistics," he said. "As treatments become more specialized and supply chains become more complex, healthcare companies need partners that can provide not just temperature-controlled storage or transportation, but end-to-end visibility, control and reliability across the entire network."
FedEx is also tapping into the trend, launching a life sciences organization earlier this month specifically to support the movement of pharmaceuticals and other healthcare products.
On an earnings call in June, FedEx's Chief Customer Officer Brie Carere told analysts that healthcare transportation revenue in fiscal year 2026 reached nearly $10 billion.
"We're building end-to-end solutions focused on global pharma customers, and what's so important with global pharma is that you have to recognize that there's a patient at the end of every delivery or someone that's waiting to be treated," said Nick Gennari, FedEx's president of healthcare. "So we take this very, very seriously."
With GLP-1s specifically, Gennari said there's an increasing complexity to delivering those medications, with forms ranging from injectables to oral pills and going direct-to-consumer. But with that complexity comes a growth opportunity for FedEx, which he said is "ideally positioned."
Gennari said FedEx has specialized technology, including its machine learning engine that allows customers to see product movement with predictive abilities, as well as its technology that identifies healthcare products and treats each differently depending on its unique needs.
Gennari also said he's "very comfortable" with the company's base capabilities and its plans for expansion, including cold-chain logistics.
"Much of the infrastructure that's required to be successful in this space, we already have. We have the airline; we have an incredible schedule; we have the lift capabilities. The network is hardened and works very well," he said.
Complex supply chainsC.H. Robinson told CNBC the logistics company had surpassed $1 billion in revenue in healthcare logistics alone over the past year, largely due to the growth in GLP-1 drugs, as it has been investing in temperature-controlled facilities.
"You need to really have that end-to-end connectivity, so you've got to have a really nice network and infrastructure built out in order to properly service the healthcare customers," said Ronnie Davis, the company's vice president of North American surface transportation.
Davis said the supply chain for medications has also become more complicated. In addition to requiring refrigeration, many drugs have a short shelf life and need to be delivered in precise windows of time.
"A lot of the innovation has been on getting the drugs to the market," Davis said. "I think what you're starting to see is that's really putting stress on the capabilities of the cold chain supply chains in the marketplace. … With the rise of GLP-1s and other specialized medicine, it's really creating a competitive nature for the same refrigerated supply resources that are there and, quite candidly, that supply is not unlimited, it's constrained."
Davis said C.H. Robinson is working to amp up its capabilities, especially to keep up with the higher volume. At the same time, he added, pharma companies are also trying to get creative to bring their products to market with a longer shelf life.
That innovation is also intersecting with the growth of artificial intelligence capabilities, according to Hendrik Venter, CEO of DHL Supply Chain. The logistics company uses AI to monitor critical life science products, tracking temperatures and anticipating where an issue might happen.
"You're seeing the industry moving from conventional to biopharma," Venter told CNBC. "You need to have a supply chain that is resilient and capable of shipping in all of these various temperature zones."
The company announced last year that it plans to invest 2 billion euros ($2.25 billion) in health logistics by 2030, with half of that allocated to the Americas.
A lot of pharmaceutical companies are also outsourcing their warehousing activities to DHL, Venter said. The company takes over those facilities, manages them and integrates them into the rest of their network.
DHL launched a pharmaceutical air corridor around the world, with a dedicated aircraft and connected network that ensures the drugs are not being shipped through separate regulatory environments.
"You cannot lose a shipment. You cannot replace it. It needs to be delivered on time, every time, in the right quality and temperatures," Venter said. "So we continue to selectively look at how to strengthen that network."
Key Takeaways FDX posted 12.5% revenue growth in fiscal 2026's fourth quarter, led largely by B2B services. FedEx appears more attractive than UPS based on valuation, pricing and financial leverage. FedEx targets $2 billion in cost savings by end-2027 and up to $1 billion in 2026 share buybacks. United Parcel Service (UPS - Free Report) and FedEx (FDX - Free Report) , with market capitalizations of $98.46 billion and $75.95 billion, respectively, are leading players in the Zacks Transportation-Air Freight and Cargo industry. These well-established companies are synonymous with parcel delivery and logistics.
Delivery trucks from both companies have become a common sight, reflecting their dominance in handling the bulk of parcel shipments. With that backdrop, let’s take a closer look at their financial performance, growth prospects and ongoing challenges. As a result, let's find out which transportation heavyweight might be the smarter investment for now.
The Case for UPSUPS has been facing prolonged revenue pressure, as geopolitical instability and persistent inflation continue to dampen consumer confidence and economic growth expectations. Uncertainty related to tariffs and geopolitical woes has further intensified these challenges.
UPS’ decision to scale back business with Amazon (AMZN - Free Report) is expected to have kept near-term volumes muted. Management reached an agreement in principle with Amazon to reduce the e-commerce giant’s volume by more than 50% by June 2026. CEO Carol Tome noted that Amazon was not the company’s most profitable customer. The reduction in volumes is compelling UPS to right-size its network.
UPS is now focusing on improving profitability over sheer volume. Under the cost-cutting initiatives, UPS has substantially reduced its U.S. operational workforce and closed daily operations at multiple leased and owned buildings. Moreover, UPS has been focusing on increasing automation in sorting and operations and leveraging AI for logistics planning to boost efficiency.
The shift in focus toward higher-margin areas such as small and medium-sized businesses or SMBs and healthcare logistics from low-margin volumes (like Amazon) is expected to aid its per-package revenues. Notably, SMBs contributed 34.5% to total U.S. volume in the March quarter, reflecting the highest SMB penetration in UPS’ history. We expect SMBs to keep performing well.
The De Minimis exemption expired last year. The trade exemption allowed packages containing goods valued at less than $800 to enter the United States without additional taxes. This development has hurt the International segment volumes in recent quarters by diverting volumes away from the China-U.S. trade lane.
Moreover, UPS’ dividend payout ratio stands at 97, raising questions about its long-term ability to maintain current dividend levels. The company’s elevated dividend payout is hurting its operational flexibility.
The Case for FDXIn the fourth quarter of fiscal 2026, results of which were released last month, FedEx’s earnings (excluding 29 cents from non-recurring items) of $6.31 per share beat the Zacks Consensus Estimate of $5.91 as well as improved 3.9% year over year. Revenues of $25 billion came ahead of the Zacks Consensus Estimate of $24.1 billion and improved 12.5% from the year-ago quarter.
In the quarter, the majority of the revenue growth was driven by business-to-business (B2B) services and the three-month period was the brightest quarter within fiscal year 2026 from a B2B perspective. This is in line with the company’s continuous efforts to move away from low-margin parcel traffic.
To bolster margins, FedEx is shifting its focus toward high-margin B2B segments — specifically healthcare, aerospace, automotive and data centers. In Europe, the company achieved its 12th consecutive quarter of international revenue share gains, driven by the strong value proposition and improving service levels.
Apart from focusing on AI tools to improve efficiency and customer experience, the transportation giant is keeping CapEx low to boost profitability. As part of its cost discipline, the company aims to achieve a CapEx of $3.9 billion in calendar year 2026. We note that the company has changed its fiscal year-end from May 31 to Dec. 31. The fiscal year change became effective for the period beginning June 1, 2026.
For the calendar year 2026, FedEx anticipates revenue growth of approximately 11%, including about 3 percentage points of assumed fuel price-driven surcharge benefit. The outlook is likely to be supported by continued momentum within base pricing and increased demand for premium B2B and high-value B2C services. This translates to an adjusted EPS range of $16.90 to $18.10. Robust free cash flow is expected to be generated in the period, with the company intending to repurchase up to $1 billion worth of shares. The company expects to generate cost savings worth $2 billion by the end of calendar 2027.
Despite ongoing headwinds, FedEx benefits from a strong brand and an extensive logistics network capable of generating stable long-term cash flows. Strategic investments continue to enhance the service offerings and strengthen its competitive position.
FedEx spun off its struggling Freight division in June 2026, thereby focusing on the core operations. The erstwhile segment of FDX was suffering due to the continued weakness in U.S. industrial production, which dampened demand across the less-than-truckload industry.
FDX’s dividend payout ratio currently stands at 24%, much lower than UPS’. So FDX, unlike UPS, does not face concerns about its long-term ability to maintain current dividend levels.
Taking a Look at the Two Companies’ Price Performance and ValuationIn a year, FDX’s shares have performed much better than those of UPS
One-Year Price ComparisonImage Source: Zacks Investment Research
UPS is trading at a forward sales multiple of 1.05X, whereas FDX’s forward sales multiple sits at 0.79X, suggesting that the former’s shares are pricier.
Image Source: Zacks Investment Research
Leverage ComparisonFDX’s lower debt-to-capital ratio implies that it relies less on debt financing and has a stronger equity position.
Image Source: Zacks Investment Research
End NoteAgreed that both FedEx and UPS continue to experience revenue pressure amid sluggish demand conditions. To navigate the challenging environment, each company is pursuing cost-reduction initiatives.
From a valuation as well as pricing standpoint, FDX appears more attractive than UPS. FedEx also maintains an edge over UPS in terms of financial leverage. Dividend sustainability concerns are not present in FDX, unlike UPS.
Taking all these factors into account, FDX appears to be the more compelling choice than UPS, even though both stocks currently carry a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Parcel Service (UPS - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this package delivery service have returned +9.1% over the past month versus the Zacks S&P 500 composite's +0.4% change. The Zacks Transportation - Air Freight and Cargo industry, to which UPS belongs, has gained 3.4% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
UPS is expected to post earnings of $1.65 per share for the current quarter, representing a year-over-year change of +6.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
The consensus earnings estimate of $7.1 for the current fiscal year indicates a year-over-year change of -0.8%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $7.89 indicates a change of +11% from what UPS is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for UPS.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of UPS, the consensus sales estimate of $21.75 billion for the current quarter points to a year-over-year change of +2.5%. The $90.32 billion and $94.07 billion estimates for the current and next fiscal years indicate changes of +1.9% and +4.2%, respectively.
Last Reported Results and Surprise HistoryUPS reported revenues of $21.2 billion in the last reported quarter, representing a year-over-year change of -1.6%. EPS of $1.07 for the same period compares with $1.49 a year ago.
Compared to the Zacks Consensus Estimate of $21.03 billion, the reported revenues represent a surprise of +0.82%. The EPS surprise was +2.88%.
Over the last four quarters, UPS surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
UPS is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about UPS. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
The upcoming report from United Parcel Service (UPS - Free Report) is expected to reveal quarterly earnings of $1.65 per share, indicating an increase of 6.5% compared to the year-ago period. Analysts forecast revenues of $21.75 billion, representing an increase of 2.5% year over year.
The current level reflects a downward revision of 0.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Given this perspective, it's time to examine the average forecasts of specific UPS metrics that are routinely monitored and predicted by Wall Street analysts.
The consensus estimate for 'Revenue- International Package- Cargo and other' stands at $174.31 million. The estimate suggests a change of +1.9% year over year.
The average prediction of analysts places 'Revenue- U.S. Domestic Package- Ground' at $10.71 billion. The estimate suggests a change of +2.1% year over year.
The combined assessment of analysts suggests that 'Revenue- U.S. Domestic Package- Deferred' will likely reach $1.05 billion. The estimate indicates a change of +2.3% from the prior-year quarter.
Analysts predict that the 'Revenue- U.S. Domestic Package' will reach $14.47 billion. The estimate indicates a year-over-year change of +2.8%.
Analysts expect 'Average revenue per piece - International Package - Total' to come in at $23.03 . Compared to the current estimate, the company reported $21.14 in the same quarter of the previous year.
It is projected by analysts that the 'Average daily package volume - International Package - Export' will reach 1.61 million. The estimate compares to the year-ago value of 1.68 million.
According to the collective judgment of analysts, 'Average daily package volume - International Package - Domestic' should come in at 1.42 million. Compared to the current estimate, the company reported 1.51 million in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Average revenue per piece - U.S. Domestic Package - Ground' should arrive at $12.34 . Compared to the current estimate, the company reported $11.46 in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Average revenue per piece - U.S. Domestic Package - Total' of $14.24 . Compared to the present estimate, the company reported $13.03 in the same quarter last year.
Analysts' assessment points toward 'Average revenue per piece - International Package - Domestic' reaching $9.31 . Compared to the present estimate, the company reported $8.61 in the same quarter last year.
Analysts forecast 'Average revenue per piece - International Package - Export' to reach $35.14 . Compared to the present estimate, the company reported $32.38 in the same quarter last year.
The consensus among analysts is that 'Average daily package volume - International Package - Total' will reach 3.02 million. The estimate is in contrast to the year-ago figure of 3.19 million.
View all Key Company Metrics for UPS here>>>
Shares of UPS have experienced a change of +9.1% in the past month compared to the +0.4% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), UPS is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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*Stock prices used were the afternoon prices of July 19, 2026. The video was published on July 21, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends United Parcel Service. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Andra AP fonden lessened its holdings in shares of United Parcel Service, Inc. (NYSE:UPS – Free Report) by 37.4% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 103,849 shares of the transportation company’s stock after selling 62,034 shares during the period. Andra AP fonden’s holdings in United Parcel Service were worth $10,217,000 as of its most recent filing with the SEC.
A number of other institutional investors and hedge funds have also bought and sold shares of UPS. Potomac Fund Management Inc. ADV boosted its stake in United Parcel Service by 0.8% during the fourth quarter. Potomac Fund Management Inc. ADV now owns 11,324 shares of the transportation company’s stock worth $1,123,000 after acquiring an additional 90 shares in the last quarter. Westbourne Investments Inc. increased its stake in United Parcel Service by 1.2% in the fourth quarter. Westbourne Investments Inc. now owns 7,876 shares of the transportation company’s stock valued at $781,000 after purchasing an additional 91 shares in the last quarter. Ipsen Advisor Group LLC raised its holdings in shares of United Parcel Service by 1.7% during the fourth quarter. Ipsen Advisor Group LLC now owns 5,670 shares of the transportation company’s stock valued at $562,000 after purchasing an additional 95 shares during the period. Webster Bank N. A. boosted its position in shares of United Parcel Service by 16.7% during the 4th quarter. Webster Bank N. A. now owns 698 shares of the transportation company’s stock worth $69,000 after purchasing an additional 100 shares in the last quarter. Finally, Peoples Financial Services CORP. boosted its position in shares of United Parcel Service by 2.5% during the 4th quarter. Peoples Financial Services CORP. now owns 4,030 shares of the transportation company’s stock worth $400,000 after purchasing an additional 100 shares in the last quarter. 60.26% of the stock is currently owned by institutional investors and hedge funds.
Key Headlines Impacting United Parcel Service Here are the key news stories impacting United Parcel Service this week:
Positive Sentiment: Sanford C. Bernstein raised its price target on UPS to $133 from $130 and reiterated an outperform rating, signaling upside confidence ahead of earnings. Positive Sentiment: Analysts expect UPS to have a chance to beat upcoming quarterly earnings expectations, supported by the right mix of improving per-package revenue and cost cuts. Positive Sentiment: Investor focus is centered on updated guidance, and any stronger-than-expected outlook could further support the shares after recent weakness. Neutral Sentiment: Market commentary notes UPS has been moving alongside broader transportation-sector earnings expectations, with traders watching for confirmation in the Q2 report. United Parcel Service Inc. Cl B stock underperforms Monday when compared to competitors Negative Sentiment: Recent articles also point to lower shipping volumes and pricing pressure from fuel surcharges and competition, including Amazon’s expanding delivery network, which could weigh on margins. Fuel surcharges wallop FedEx, UPS shippers as Amazon looms Analyst Ratings Changes A number of research firms have issued reports on UPS. Sanford C. Bernstein lifted their price target on United Parcel Service from $130.00 to $133.00 and gave the company an “outperform” rating in a research note on Tuesday. Wall Street Zen upgraded United Parcel Service from a “hold” rating to a “buy” rating in a research note on Saturday. Susquehanna upped their target price on shares of United Parcel Service from $116.00 to $118.00 and gave the stock a “neutral” rating in a research note on Wednesday, April 29th. Citizens Jmp started coverage on shares of United Parcel Service in a report on Wednesday, July 15th. They issued a “market perform” rating for the company. Finally, Weiss Ratings raised shares of United Parcel Service from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, July 10th. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, twelve have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $111.50.
Check Out Our Latest Stock Report on UPS
United Parcel Service Price Performance Shares of NYSE:UPS opened at $116.32 on Wednesday. The company’s fifty day moving average price is $107.30 and its 200-day moving average price is $106.36. United Parcel Service, Inc. has a one year low of $82.00 and a one year high of $122.41. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.21 and a quick ratio of 1.21. The firm has a market capitalization of $98.87 billion, a price-to-earnings ratio of 18.82, a PEG ratio of 1.80 and a beta of 1.05.
United Parcel Service (NYSE:UPS – Get Free Report) last announced its quarterly earnings data on Tuesday, April 28th. The transportation company reported $1.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.02 by $0.05. United Parcel Service had a return on equity of 35.95% and a net margin of 5.94%.The firm had revenue of $21.20 billion for the quarter, compared to analysts’ expectations of $20.99 billion. During the same period last year, the firm earned $1.49 earnings per share. The company’s revenue for the quarter was down 1.4% compared to the same quarter last year. On average, equities research analysts anticipate that United Parcel Service, Inc. will post 7.1 earnings per share for the current fiscal year.
United Parcel Service Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Monday, May 18th were given a dividend of $1.64 per share. This represents a $6.56 dividend on an annualized basis and a yield of 5.6%. The ex-dividend date of this dividend was Monday, May 18th. United Parcel Service’s dividend payout ratio (DPR) is 106.15%.
United Parcel Service Company Profile (Free Report)
United Parcel Service (NYSE: UPS) is a global package delivery and supply chain management company that provides a broad range of transportation, logistics and e-commerce services. Its core business centers on small-package delivery and last-mile distribution for business and individual customers, supported by a network of ground transportation, air cargo operations (UPS Airlines) and sorting facilities. In addition to parcel delivery, UPS offers freight transportation, contract logistics, warehousing, customs brokerage and reverse-logistics solutions designed to support domestic and international commerce.
The company traces its roots to 1907 when it began as a small messenger service in the United States and later evolved into the United Parcel Service.
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United Parcel Service (UPS - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 28. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis package delivery service is expected to post quarterly earnings of $1.65 per share in its upcoming report, which represents a year-over-year change of +6.5%.
Revenues are expected to be $21.75 billion, up 2.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.17% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for UPS?For UPS, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.06%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that UPS will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that UPS would post earnings of $1.04 per share when it actually produced earnings of $1.07, delivering a surprise of +2.88%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
UPS appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Key Takeaways UPS is expected to report Q2 EPS of $1.65 and revenues of $21.75 billion on July 28.Lower Amazon volumes may weigh on shipments, while cost cuts and automation support profitability. A shift toward SMBs, B2B and healthcare logistics is expected to lift UPS' revenue per piece. United Parcel Service (UPS - Free Report) is scheduled to report second-quarter 2026 results on July 28, before market open.
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $1.65 and $21.75 billion, respectively.
The bottom-line projection indicates a year-over-year increase of 6.5%. The consensus mark for the to-be-reported quarter has remained stable over the past 60 days. The Zacks Consensus Estimate for quarterly revenues implies a year-over-year expansion of 2.5%.
Image Source: Zacks Investment Research
For full-year 2026, the Zacks Consensus Estimate for UPS’ revenues is pegged at $90.32 billion, implying an increase of 1.9% year over year. The consensus mark for full-year EPS is pinned at $7.10, calling for a 0.8% year-over-year contraction. The consensus mark for 2026 EPS has remained stable over the past 60 days.
UPS’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters (missing the mark once). The average beat is 10.6%.
Given this backdrop, let us examine the factors that might have influenced UPS’ performance in the to-be-reported quarter.
The interim peace deal between the United States and Iran has resulted in a sharp fall in oil prices. This development is likely to have aided UPS’ bottom-line performance since expenses on fuel represent a key input cost for transportation stocks.
Despite having come down from the highs witnessed when the war between the nations was in full flow, oil prices are fluctuating, given the fragility of the interim peace deal. In this scenario, focus will also be on UPS’ guidance for the September quarter as well as for full-year 2026.
UPS’ decision to scale back business with Amazon (AMZN - Free Report) is expected to have kept second-quarter volumes muted. Management reached an agreement in principle with Amazon to reduce the e-commerce giant’s volume by more than 50% by June 2026. CEO Carol Tome noted that Amazon was not the company’s most profitable customer. The reduction in volumes is compelling UPS to right-size its network. We expect consolidated average daily volumes to decrease 5.2% in the June quarter from the year-ago actual.
Second-quarter results are likely to reflect UPS’ efforts toward improving profitability over sheer volume. Under the cost-cutting initiatives, UPS has substantially reduced its U.S. operational workforce and closed daily operations at multiple leased and owned buildings. Moreover, UPS has been focusing on increasing automation in sorting and operations and leveraging AI for logistics planning to boost efficiency.
The shift in focus toward higher-margin areas such as small and medium-sized businesses or SMBs and healthcare logistics from low-margin volumes (like Amazon) is expected to be reflected in UPS’ second-quarter results and to aid its per-package revenues. We expect consolidated average revenue per piece to increase 9.2% in the June quarter from the year-ago actual.
Notably, SMBs contributed 34.5% to total U.S. volume in the March quarter, reflecting the highest SMB penetration in UPS’ history. We expect SMBs to have performed strongly in the June quarter as well, boosting results.
In terms of B2B, this represented 45.2% of its total U.S. volume in the March quarter, which was a 140-basis point improvement compared with the first quarter of 2025 and also the highest first quarter B2B penetration in six years. Currently, UPS focuses on premium segments like SMB, B2B and complex health care, and the trend is likely to have continued in the June quarter as well.
What Our Model Says About UPSOur proven model conclusively predicts an earnings beat for UPS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
UPS has an Earnings ESP of +1.06% (the Most Accurate Estimate is a cent above the Zacks Consensus Estimate) and a Zacks Rank #3.
Highlights of UPS’ Q1 EarningsQuarterly earnings per share (excluding 5 cents from non-recurring items) of $1.07 beat the Zacks Consensus Estimate of $1.04 but declined 28.2% year over year. Revenues of $21.2 billion surpassed the Zacks Consensus Estimate of $21 billion but decreased 1.6% year over year.
U.S. Domestic Package revenues of $14.1 billion (above our estimate of $13.8 billion) decreased 2.3% year over year, owing to an expected decline in volume. Revenue per piece grew 8.3% year over year. Segmental operating profit (adjusted) fell 44.1% year over year to $565 million. The adjusted operating margin for the segment was 4%.
Other Stocks to ConsiderHere are a few other stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these too have the right combination of elements to beat on earnings this reporting cycle.
CSX Corporation (CSX - Free Report) has an Earnings ESP of +0.95% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CSX is scheduled to report second-quarter 2026 earnings on July 22. The Zacks Consensus Estimate for second-quarter 2026 earnings has been revised upward by 3 cents over the past 30 days to 50 cents per share. CSX’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters and missed in the remaining one, the average beat being 3.2%.
Union Pacific (UNP - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #3 at present. UNP is scheduled to report second-quarter 2026 earnings on July 23.
The Zacks Consensus Estimate for Union Pacific’s second-quarter 2026 earnings has moved up by 6 cents to $3.20 per share over the past 30 days. Union Pacific’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters (missing the mark on the other occasion). The average beat is 2.3%.
In the latest close session, United Parcel Service (UPS - Free Report) was down 3.88% at $113.15. The stock's performance was behind the S&P 500's daily loss of 0.19%. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Coming into today, shares of the package delivery service had gained 12.26% in the past month. In that same time, the Transportation sector gained 5.57%, while the S&P 500 gained 0.55%.
The upcoming earnings release of United Parcel Service will be of great interest to investors. The company's earnings report is expected on July 28, 2026. The company is expected to report EPS of $1.65, up 6.45% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $21.75 billion, showing a 2.5% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.1 per share and a revenue of $90.32 billion, representing changes of -0.84% and +1.87%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for United Parcel Service. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. Right now, United Parcel Service possesses a Zacks Rank of #3 (Hold).
Investors should also note United Parcel Service's current valuation metrics, including its Forward P/E ratio of 16.57. This denotes a discount relative to the industry average Forward P/E of 17.61.
It is also worth noting that UPS currently has a PEG ratio of 1.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.79 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zámořské trhy v poslední čtvrtině obchodního dne reflektovaly eskalační vyjádření prezidenta Trumpa i Íránských představitelů a z mírně kladných čísel briskně přetočily do záporu. Nevydržela tak dobrá nálada z úvodu seance a široký index S&P 500 klesá potřetí v řadě.
Index Dow Jones -0,59 % na 51839,26 b.
S&P 500 -0,19 % na 7443,28 b.
Nasdaq Composite -0,05 % na 25508,07 b.
Index S&P 500 -0,19 % na 7443,28 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Komunikační služby +0,7 % Zdravotní péče -1,2 % Energie +0,5 % Základní materiály -0,9 % Informační technologie +0,1 % Průmysl -0,8 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Global Payments (GPN) +5,9 % Carvana (CVNA) -4,8 % Lumentum Holdings (LITE) +4,5 % Honeywell Aerospace (HONA) -4,3 % Teradyne (TER) +3,5 % Oracle Corp (ORCL) -4,0 % Axon Enterprise (AXON) +3,4 % KKR (KKR) -3,9 % Marvell Technology (MRVL) +3,3 % United Parcel Service (UPS) -3,9 %
Martin Varecha
Fio banka, a.s.
Prohlášení
I'm a dividend investor with a value bias, so I prefer to buy historically well-run companies while they are out of favor on Wall Street. Buying stocks that everybody seems to love isn't something I usually do. Which is why I would buy United Parcel Services (UPS +0.46%) over Caterpillar (CAT +0.35%) today. Here's a deeper dive into my thinking.
What's wrong with UPS? United Parcel Services is one of a small number of large package delivery companies. This is a capital-intensive business that requires a vast distribution network and impressive logistics skills. It would be difficult for a new competitor to simply start from scratch. For example, Amazon (AMZN 0.91%) has been building out its own distribution business for years, yet it still uses UPS' services.
Image source: Getty Images.
That said, UPS has been around for a long time. The industrial giant needed to modernize its operations to incorporate the latest technology and trim inefficiencies that had accumulated over the years. This is exactly what it has been doing, while, at the same time, refocusing on the company's most profitable business lines. The process basically involved high up-front costs while revenues were falling, because the company was moving away from high-volume, low-profit-margin business (such as delivering packages for Amazon).
However, signs of progress are apparent. The company's revenue per piece in the U.S. market has been improving even as overall U.S. revenue has been falling. That is management's goal, and management believes 2026 will be the inflection point for the business, with the second half expected to be stronger than the first.
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But Wall Street is in a show-me mood, with the stock still offering a historically high 5.8% yield and the price-to-sales and price-to-book value ratios below their five-year averages. The price-to-earnings ratio is above the five-year average, but earnings are being depressed by the turnaround right now, so that doesn't worry me. UPS looks like an attractive, high-yield value, with the turnaround effort nearing completion.
Caterpillar is doing great and priced for perfection Catperillar's earth-moving equipment and power products are hot commodities today. First-quarter 2026 revenue rose 22% year over year, while adjusted earnings increased 30%. The company's backlog is at record levels. It is hitting on all cylinders.
However, there's a small problem: valuation. The stock's 0.7% dividend yield is near historical lows. And its P/S, P/E, and P/B ratios are all more than twice their five-year averages. The stock is very expensive right now and, arguably, is priced for perfection. If the business were to slow down, fickle investors would likely dump the stock.
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Part of the problem is that Caterpillar has gotten caught up in the hype around artificial intelligence infrastructure. Cat certainly has a place in the AI discussion, with its machinery needed for construction and its power products offering off-grid power. But given the lofty share price, it would be hard for me, an income investor with a value bias, to justify buying the stock at this price.
Long-term investors have to stick to their plan Caterpillar is a great company that is executing very well today. I'm not trying to knock the business in any way. But paying too much for a great company can turn it into a bad investment. A $1,000 investment today would only get you one share of Cat's stock.
UPS, on the other hand, has a strong industry position and a great history. It is also nearing the end of an important business overhaul, yet it seems to me that Wall Street isn't giving it enough credit for its success. If you think long-term, you can pick up eight shares for $1k, getting an attractive yield while you wait for investors to catch on to the unfolding turnaround story.
Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider International Seaways?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. International Seaways (INSW - Free Report) holds a #1 (Strong Buy) at the moment and its Most Accurate Estimate comes in at $5.45 a share 20 days away from its upcoming earnings release on August 5, 2026.
INSW has an Earnings ESP figure of +3.10%, which, as explained above, is calculated by taking the percentage difference between the $5.45 Most Accurate Estimate and the Zacks Consensus Estimate of $5.28. International Seaways is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
INSW is part of a big group of Transportation stocks that boast a positive ESP, and investors may want to take a look at United Parcel Service (UPS - Free Report) as well.
Slated to report earnings on July 28, 2026, United Parcel Service holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $1.66 a share 12 days from its next quarterly update.
The Zacks Consensus Estimate for United Parcel Service is $1.65, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +1.06%.
Because both stocks hold a positive Earnings ESP, INSW and UPS could potentially post earnings beats in their next reports.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
ATLANTA--(BUSINESS WIRE)---- $UPS #upsearnings--United Parcel Service (NYSE:UPS) will announce its 2026 second-quarter results on July 28, 2026, at approximately 6:00 a.m. Eastern Time. At 8:30 a.m. ET, UPS Chief Executive Officer Carol Tomé and Chief Financial Officer Brian Dykes will lead an investor conference call to discuss the results. This call will be open to the public via a live webcast. To listen, visit the UPS Investor Relations page and click on “Webcast.” The webcast audio will be accessible on the Inv.
United Parcel Service (UPS - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
Therefore, the Zacks rating upgrade for UPS basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For UPS, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for UPSThis package delivery service is expected to earn $7.11 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for UPS. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.4%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of UPS to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
United Parcel Service (UPS - Free Report) closed the most recent trading day at $112.47, moving +1.56% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.42%. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq increased by 0.29%.
Prior to today's trading, shares of the package delivery service had gained 1.92% outpaced the Transportation sector's gain of 0.73% and lagged the S&P 500's gain of 2.2%.
Market participants will be closely following the financial results of United Parcel Service in its upcoming release. It is anticipated that the company will report an EPS of $1.66, marking a 7.1% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $21.63 billion, up 1.94% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $7.11 per share and a revenue of $90.29 billion, demonstrating changes of -0.7% and +1.84%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for United Parcel Service. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.14% higher. United Parcel Service is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, United Parcel Service is at present trading with a Forward P/E ratio of 15.57. This valuation marks a discount compared to its industry average Forward P/E of 16.21.
Also, we should mention that UPS has a PEG ratio of 1.76. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.74.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 31, positioning it in the top 13% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
United Parcel Service (UPS), a global package delivery company, and FedEx (FDX), a major parcel transportation provider, faced renewed investor concern after Mo
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? United Parcel Service (UPS - Free Report) , which belongs to the Zacks Transportation - Air Freight and Cargo industry, could be a great candidate to consider.
This package delivery service has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 5.05%.
For the last reported quarter, UPS came out with earnings of $1.07 per share versus the Zacks Consensus Estimate of $1.04 per share, representing a surprise of 2.88%. For the previous quarter, the company was expected to post earnings of $2.22 per share and it actually produced earnings of $2.38 per share, delivering a surprise of 7.21%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for UPS lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
UPS currently has an Earnings ESP of +0.22%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
United Parcel Service (UPS - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this package delivery service have returned +6.5%, compared to the Zacks S&P 500 composite's +1.1% change. During this period, the Zacks Transportation - Air Freight and Cargo industry, which UPS falls in, has lost 1.6%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
UPS is expected to post earnings of $1.66 per share for the current quarter, representing a year-over-year change of +7.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.5%.
The consensus earnings estimate of $7.11 for the current fiscal year indicates a year-over-year change of -0.7%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $7.9 indicates a change of +11.2% from what UPS is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for UPS.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For UPS, the consensus sales estimate for the current quarter of $21.63 billion indicates a year-over-year change of +1.9%. For the current and next fiscal years, $90.29 billion and $93.93 billion estimates indicate +1.8% and +4% changes, respectively.
Last Reported Results and Surprise HistoryUPS reported revenues of $21.2 billion in the last reported quarter, representing a year-over-year change of -1.6%. EPS of $1.07 for the same period compares with $1.49 a year ago.
Compared to the Zacks Consensus Estimate of $21.03 billion, the reported revenues represent a surprise of +0.82%. The EPS surprise was +2.88%.
Over the last four quarters, UPS surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
UPS is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about UPS. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
The price of Forever stamps will rise from $0.78 to $0.82 this weekend. When the stamp was first issued in 2007, the price was $.41. “Forever” stamps never expire, and the price at which they are purchased cannot be raised. According to the Post Office, A “Global Forever stamp’s value is linked to the First-Class Mail International single-piece 1-ounce letter price that is in effect on the day of mailing, regardless of when the stamp was purchased and regardless of how prices may change in the future.”
Among the reasons the Post Office gave for the increase was that it is in financial trouble, a fact that has been the case for decades. It serves no purpose in the modern world and should be shut down as soon as possible.
For years, the cost of retirement fund payments has hung around the U.S. Postal Service like an albatross. According to Brookings, “As of September 30, 2024, the US Postal Service (USPS) FERS retirement fund balance is approximately $138 billion, which represents 76% of its actuarial liability. Total retirement-related costs for the USPS are significant, reaching $10.3 billion in 2025, with annual pension funding obligations exceeding $10 billion.”
U.S. Postmaster General David Steiner told the House Oversight subcommittee that handles the Post Office that it could run out of money by October if it has to make more retirement payments and related payments to the federal government.
Donald Trump has suggested the best way to solve the problem is to privatize the Post Office. In March 2025, he said, “It’s an idea a lot of people have had for a long time. We’re looking at it.”
The options Steiner gave the committee should have been adopted years ago. These include ending six-day delivery and cutting some of its 33,780 locations. These, incidentally, include offices in towns with under 3,000 residents.
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The Postal Service would also need to cut its workforce of 640,000. That might cause a problem. There are 533,000 “career workers.” The American Postal Workers Union represents 200,000 Post Office workers. That means large layoffs could cause a fight. And, Congressmen are not fond of the idea that a Post Office in their districts might be closed.
Among other things, it would not be affordable to deliver mail even five days a week. That would end. And all of the locations could disappear. How many people use the Post Office regularly? How many visit a Post Office? On the other hand, how many people use email instead of regular mail? How many people use email attachments instead of sending documents via mail? How many companies accept payment online?
Some portion of the delivery service would likely be taken over by UPS (NYSE: UPS | UPS Price Prediction ) and FedEx (NYSE: FDX)–at least the deliveries that are profitable.
It’s time to sunset the Post Office, which is now about two and a half centuries old. Who really needs the mail? Not enough people to have an organization that loses billions of dollars.
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United Parcel Service: Navigating Revenue FluctuationsUnited Parcel Service (UPS 1.22%) primarily generates revenue by offering time-definite package delivery, international logistics, and specialized supply chain services to clients worldwide.
In the first half of 2026, it announced plans to close additional distribution centers while reporting a 4% net income margin for the quarter ended March 31, 2026.
FedEx: Building Steady Revenue GrowthFedEx (FDX 0.51%) primarily earns revenue by providing rapid package shipping, heavy cargo transport, and integrated supply chain management services across international borders.
It finalized the spin-off of its freight business into an independent public company in June 2026, and reported a 6% net income margin for the quarter ended May 31, 2026.
Why Revenue Matters for Retail InvestorsRevenue allows investors to see how much money a business is bringing in before any expenses are deducted. Tracking this figure helps investors understand the total scale and top-line growth trajectory of a business.
Quarterly Revenue for United Parcel Service and FedExQuarter (Period End)United Parcel Service RevenueFedEx RevenueQ3 2024$22.2 billion (period ended Sept. 2024)$21.6 billion (period ended Aug. 2024)Q4 2024$25.2 billion (period ended Dec. 2024)$22.0 billion (period ended Nov. 2024)Q1 2025$21.5 billion (period ended March 2025)$22.2 billion (period ended Feb. 2025)Q2 2025$21.2 billion (period ended June 2025)$22.2 billion (period ended May 2025)Q3 2025$21.4 billion (period ended Sept. 2025)$22.2 billion (period ended Aug. 2025)Q4 2025$24.5 billion (period ended Dec. 2025)$23.5 billion (period ended Nov. 2025)Q1 2026$21.2 billion (period ended March 2026)$24.0 billion (period ended Feb. 2026)Q2 2026Not yet reported$25.0 billion (period ended May 2026)Data source: Company filings. Data as of July 7, 2026.
Foolish TakeExamining the revenue trends for UPS and FedEx reveal different stories about their businesses. UPS experiences a spike in the fourth quarter because one of its biggest customers historically has been Amazon, and the holiday season produces more sales for the e-commerce giant.
That has changed with UPS slashing its business with Amazon because, while the partnership contributes a lot of revenue, the margins are slim. UPS has intentionally shed this low-margin volume to improve its operating profit margins, leading to bumpy quarterly revenue and year-over-year declines. UPS is also predominantly unionized, and these higher costs compared to FedEx’s non-union workforce mean the company must pursue margin protection over revenue growth.
FedEx aggressively prioritizes volume growth, enabling its sales to expand year over year. Its recent spinoff of its freight division should help this further as well. For its 2026 fiscal year ended May 31, the company’s $94.7 billion was a strong increase over the prior year’s $87.9 billion. FedEx expects about 11% year-over-year growth in its next fiscal year, which the company shifted into a calendar year starting in June of this year.
Robert Izquierdo has positions in Amazon, FedEx, and United Parcel Service. The Motley Fool has positions in and recommends Amazon and United Parcel Service. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.
United Parcel Service surged 31% since last summer, outperforming the benchmark's 16%, excluding dividends. I am downgrading UPS from buy to hold due to anticipated headwinds, including muted revenue growth and bottom-line pressure into FY2026. Recent quarters show decelerating revenue declines, but both top and bottom lines still fell, raising caution.
UPS remains a 'sell' as top-line recovery could be postponed, while dividend sustainability is in question. Amazon's move to open its logistics network to third parties intensifies competition, directly threatening UPS's growth and margin outlook. Despite aggressive cost cuts and a higher-margin focus, FCF remains insufficient to cover the $1.64 dividend, raising the risk of a cut.
United Parcel Service (UPS - Free Report) closed the most recent trading day at $111.96, moving +1.76% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.45%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 1.16%.
Coming into today, shares of the package delivery service had gained 2.15% in the past month. In that same time, the Transportation sector gained 1.66%, while the S&P 500 gained 2.14%.
The investment community will be paying close attention to the earnings performance of United Parcel Service in its upcoming release. The company is forecasted to report an EPS of $1.66, showcasing a 7.1% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.51 billion, up 1.34% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $7.11 per share and a revenue of $89.78 billion, demonstrating changes of -0.7% and +1.26%, respectively, from the preceding year.
Any recent changes to analyst estimates for United Parcel Service should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% higher. United Parcel Service presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that United Parcel Service has a Forward P/E ratio of 15.47 right now. This represents a discount compared to its industry average Forward P/E of 16.08.
One should further note that UPS currently holds a PEG ratio of 1.75. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.72.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 32, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
United Parcel Service (UPS +1.02%) is deeply unloved on Wall Street, with the stock down 50% from its 2022 high. To be fair, the parcel delivery company has been going through a massive business overhaul, and its quarterly earnings results have been pretty tough to read. But it is important to keep in mind what the company is doing and why. The announcement of a $48 million investment in temperature-controlled facilities highlights something big.
UPS is updating its business approach To simplify this industrial giant's turnaround effort, it is basically trying to modernize. That requires spending money to update technology, cut staffing levels, and shutter less efficient facilities. At the same time, however, UPS has been honing in on its best customers, which has required limiting its relationship with high-volume customers that offer only small profit margins.
Image source: Getty Images.
From a high-level view, this overhaul has led to lower revenue and higher costs. Which investors have clearly been worried about. However, there are early signs of success: revenue per package in the U.S. market has been rising despite lower overall revenue in the division. That's exactly the goal. Management is also calling for the second half of 2026 to be the inflection point for the turnaround effort.
UPS is building for the future UPS isn't just moving away from low-margin customers; it is also moving toward high-margin customers. One customer segment earmarked for growth is the healthcare sector. That's why UPS is spending $48 million on 27 temperature-controlled facilities. There is an increasing demand for medications that must be kept at low temperatures during the delivery process, notably including GLP-1 weight-loss drugs.
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This isn't a brand new business; UPS has been using acquisitions to bolster its global position in this sector. However, the key is that healthcare customers offer wider profit margins and attractive growth opportunities. It is far more desirable to invest in moving medicine than to boost operations that just move more low-value boxes.
UPS has a huge 6% dividend yield because investors are worried about the turnaround. That's fair given recent results. But the investment in temperature-controlled facilities highlights the company's long-term strategic focus and opportunity. It is one more sign that UPS could be close to shifting from shrinking its business to growing it. And when that happens, the growth will likely be more impactful because it will come with wider profit margins.
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends United Parcel Service. The Motley Fool has a disclosure policy.
United Parcel Service (UPS - Free Report) closed at $109.54 in the latest trading session, marking a +1.9% move from the prior day. This move outpaced the S&P 500's daily loss of 0.22%. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.66%.
Shares of the package delivery service witnessed a loss of 1.31% over the previous month, trailing the performance of the Transportation sector with its gain of 2.22%, and the S&P 500's loss of 1.21%.
The upcoming earnings release of United Parcel Service will be of great interest to investors. The company is predicted to post an EPS of $1.65, indicating a 6.45% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $21.51 billion, indicating a 1.34% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.1 per share and a revenue of $89.78 billion, indicating changes of -0.84% and +1.26%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for United Parcel Service. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, United Parcel Service boasts a Zacks Rank of #3 (Hold).
In terms of valuation, United Parcel Service is presently being traded at a Forward P/E ratio of 15.14. This denotes no noticeable deviation relative to the industry average Forward P/E of 15.14.
Investors should also note that UPS has a PEG ratio of 1.71 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.68 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
United Parcel Service (UPS - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this package delivery service have returned +2.5% over the past month versus the Zacks S&P 500 composite's -1.4% change. The Zacks Transportation - Air Freight and Cargo industry, to which UPS belongs, has lost 4.3% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, UPS is expected to post earnings of $1.67 per share, indicating a change of +7.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $7.1 points to a change of -0.8% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $7.9 indicates a change of +11.2% from what UPS is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, UPS is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For UPS, the consensus sales estimate for the current quarter of $21.51 billion indicates a year-over-year change of +1.3%. For the current and next fiscal years, $89.78 billion and $93.42 billion estimates indicate +1.3% and +4.1% changes, respectively.
Last Reported Results and Surprise HistoryUPS reported revenues of $21.2 billion in the last reported quarter, representing a year-over-year change of -1.6%. EPS of $1.07 for the same period compares with $1.49 a year ago.
Compared to the Zacks Consensus Estimate of $21.03 billion, the reported revenues represent a surprise of +0.82%. The EPS surprise was +2.88%.
Over the last four quarters, UPS surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
UPS is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about UPS. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
In the latest close session, United Parcel Service (UPS - Free Report) was up +2.99% at $109.31. This change outpaced the S&P 500's 0.01% loss on the day. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq lost 0.46%.
Prior to today's trading, shares of the package delivery service had gained 1.6% lagged the Transportation sector's gain of 3.19% and outpaced the S&P 500's loss of 1.4%.
Investors will be eagerly watching for the performance of United Parcel Service in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.67, indicating a 7.74% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $21.51 billion, indicating a 1.34% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.1 per share and a revenue of $89.78 billion, indicating changes of -0.84% and +1.26%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for United Parcel Service. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. United Parcel Service presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, United Parcel Service is holding a Forward P/E ratio of 14.95. This expresses no noticeable deviation compared to the average Forward P/E of 14.95 of its industry.
It is also worth noting that UPS currently has a PEG ratio of 1.69. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.66.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 104, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Austin, June 17, 2026 (GLOBE NEWSWIRE) -- Uninterruptible Power Supply (UPS) Market Size & Growth Insights:
According to the SNS Insider, “The global Uninterruptible Power Supply (UPS) Market was valued at USD 12.95 billion in 2025 and is expected to reach USD 23.94 billion by 2035, growing at a CAGR of 6.42% over 2026-2035.”
Rapid Expansion of Data Centers, Cloud Computing Infrastructure, and Digital Transformation Initiatives is Driving Market Growth Globally
Increasing reliance on reliable digital infrastructure can be cited among the main reasons for the expansion of the Uninterruptible Power Supply Market. Companies, governments, cloud services, hospitals, telecoms, factories, and other institutions are using modern UPS solutions that help them to maintain operation continuity without interruption due to power blackouts, voltage spikes, and unstable electricity supply. Artificial Intelligence load deployment, High-Performance Computing, 5G telecommunication network, industrial automation, and edge computing infrastructure deployment have greatly boosted the market demand for UPS.
Get a Sample Report of Uninterruptible Power Supply (UPS) Market Forecast @ https://www.snsinsider.com/sample-request/10187
Leading Market Players with their Product Listed in this Report are:
Schneider ElectricEaton CorporationABB Ltd.Siemens AGMitsubishi Electric CorporationHuawei Technologies Co. Ltd.Delta Electronics Inc.Vertiv Holdings Co.Toshiba CorporationGeneral Electric CompanyEmerson Electric Co.Hitachi Ltd.Fuji Electric Co. Ltd.Legrand SASocomec GroupRiello ElettronicaBorri S.p.A.Kehua Data Co. Ltd.AEG Power SolutionsTripp Lite Uninterruptible Power Supply (UPS) Market Report Scope:
Report AttributesDetailsMarket Size in 2025EUSD 12.95 BillionMarket Size by 2035USD 23.94 BillionCAGRCAGR of 6.42% From 2026 to 2035Report Scope & CoverageMarket Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast OutlookKey Segmentation• By UPS Type (Online/Double Conversion UPS, Line-Interactive UPS, Offline/Standby UPS, Modular UPS, Hybrid UPS, Others),
• By Capacity (Below 10 kVA, 10–100 kVA, 100–500 kVA, Above 500 kVA),
• By Application (Data Centers, Telecommunications, Healthcare, Industrial Manufacturing, Commercial Buildings, BFSI, Government & Defense, Others),
• By Battery Type (Lead-Acid Batteries, Lithium-Ion Batteries, Nickel-Cadmium Batteries, Flywheel Energy Storage, Others) Purchase Single User PDF of Uninterruptible Power Supply (UPS) Market Report (20% Discount) @ https://www.snsinsider.com/checkout/10187
Key Segmentation Analysis:
By UPS Type
Online/Double Conversion UPS captured around 45.44% market share in 2025 due to high performance levels in protecting the power supply and conditioning it continuously across the globe. It is anticipated that the fastest growing segment during the forecast period would be the Modular UPS segment, thanks to the rising installations of hyperscale data centers and edge computing centers.
By Capacity
The market was driven by the 10-100 kVA range due to its extensive use in commercial buildings, hospitals, IT systems of enterprises, industrial units, and telecoms networks; it held a share of around 29.87% in 2025. The above 500 kVA range is forecasted to grow at a higher rate due to increasing expenditure on hyperscale data centers, artificial intelligence computing centers, cloud, and industrial automation systems needing huge backup powers.
By Application
The Data Centers segment held the largest market share with more than 35.91%, whereas the growth rate among all segments was anticipated to be the highest for the Data Centers segment during the forecast period from 2026 to 2030. The continuous demand for cloud computing, hyperscale datacenters, artificial intelligence, HPC, and edge computing is leading to higher requirements for efficient UPS systems.
By Battery Type
Lead-Acid Batteries occupied 49.68% market share in 2025 because of their existing supply chain, dependability, low costs, and use in various sectors such as industry, healthcare, business, telecoms, and data centers. On the other hand, Lithium-Ion Batteries are anticipated to show the highest CAGR because of their increasing need due to higher energy density, long-lasting operation, reduced maintenance needs, fast charging, and better energy efficiency.
Regional Insights:
According to the data provided by Asia Pacific, in 2025, it held a dominating market share position in the Global Uninterruptible Power Supply market at 38.74% and would be growing at the fastest CAGR of 7.18% from 2026-2035 due to factors such as increasing digitalization, growing infrastructural development for hyperscale data centers, increasing automation in industrial operations, and growing telecommunication and cloud computing network infrastructure.
The North American market remains one of the key regional markets, thanks to huge investments made in cloud computing technologies, AI-enabled computing facilities, edge computing facilities, and telecommunication infrastructures. Modular and high-capacity uninterruptible power supplies are witnessing significant adoption in North America, where businesses seek to safeguard their operations from any potential disruption caused by grid outages and extreme weather conditions.
Do you have any specific queries or need any customized research on Uninterruptible Power Supply (UPS) Market? Submit your inquiry here @ https://www.snsinsider.com/enquiry/10187
Recent Developments:
2026: Schneider Electric expanded its next-generation UPS portfolio by increasing deployments of AI-powered EcoStruxure Data Center solutions and high-efficiency modular UPS systems across hyperscale and edge computing facilities in North America, Europe, and Asia Pacific, strengthening support for high-density AI and cloud workloads.2025: Eaton Corporation enhanced its energy resilience strategy through the expansion of its lithium-ion UPS portfolio, advanced digital monitoring technologies, and grid-interactive power management solutions targeting data centers and industrial applications. Exclusive Sections of the Uninterruptible Power Supply (UPS) Market Report (The USPs)
POWER RELIABILITY & OUTAGE IMPACT BENCHMARKS – helps you understand outage frequency trends, downtime risks, power quality challenges, and business continuity requirements across critical industries and digital infrastructure environments.BATTERY TECHNOLOGY TRANSITION ANALYSIS – helps you evaluate the shift from conventional lead-acid batteries to advanced lithium-ion technologies, including lifecycle performance, maintenance requirements, charging efficiency, and total cost of ownership.DATA CENTER POWER PROTECTION DEPLOYMENT TRACKER – helps you identify UPS adoption trends across hyperscale, colocation, enterprise, and edge data centers, along with evolving backup power architecture requirements.ENERGY EFFICIENCY & OPERATIONAL OPTIMIZATION METRICS – helps you assess UPS efficiency ratings, energy savings potential, power utilization effectiveness, carbon reduction opportunities, and long-term operational cost benefits.GRID RESILIENCE & CRITICAL INFRASTRUCTURE READINESS INSIGHTS – helps you evaluate preparedness against power disruptions, voltage fluctuations, extreme weather events, cybersecurity-related outages, and utility grid instability.AI, CLOUD & DIGITAL INFRASTRUCTURE POWER DEMAND OUTLOOK – helps you gauge the impact of AI computing, cloud expansion, edge computing deployments, telecommunications modernization, and high-performance computing workloads on future UPS demand. About Us:
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AI investments deliver simplified solutions and greater predictability, reliability, visibility and control
ATLANTA--(BUSINESS WIRE)--For more than three years, UPS (NYSE: UPS) has strategically deployed AI to transform global logistics. Today, the company is detailing AI-powered solutions that combine the expertise of its approximately 460,000 employees with technology to shape the future of UPS. These initiatives advance a companywide priority: simplification.
UPS is scaling AI, automation and advanced analytics to improve end-to-end visibility and the overall customer experience; make its global logistics network faster, more predictable and resilient; and ignite innovation.
Share UPS is scaling AI, automation and advanced analytics to improve end-to-end visibility and the overall customer experience; make its global logistics network faster, more predictable and resilient; and ignite innovation.
"After 118 years of reinventing logistics, we have entered a defining moment – using AI to simplify how we work across the enterprise, from customer acquisition and onboarding to how we plan, move and deliver," said Carol B. Tomé, UPS chief executive officer. "We are pairing the deep expertise of our people with the power of AI to drive faster decisions and a better experience for our customers around the globe."
Each year, UPS customers ship packages that generate billions of tracking numbers. With market volatility driving supply chain complexity, customers increasingly demand visibility that goes far beyond an anticipated delivery date. UPS is applying AI to power industry-leading end-to-end visibility and control – and to improve customer support. Specifically, the company is:
Redefining tracking to support more than 98% of customer service requests by the end of 2026, using AI and human expertise across digital and voice channels – including AI-enabled intelligent assistants in more than 20 countries. Equipping customer care teams with AI-powered, real-time shipment insights to resolve inquiries and claims faster. Transforming reverse logistics through Happy Returns, using a conversational, AI-powered experience to simplify the post-purchase journey and reduce returns fraud. Combining RFID and AI-powered tracking to deliver near real-time, package-level visibility – giving customers greater transparency, flexibility and enabling faster, smarter decisions. Further, UPS is delivering AI solutions to better serve customers around the globe including:
Scaling proprietary network planning tools that model "what if" scenarios using real-time inputs – weather, transportation delays, volume forecasts – to stress-test operations and generate execution-ready plans before disruptions impact service. Expanding a real-time digital twin of the global network to include all modes of transportation, creating a digital replica of facilities, air and ground networks, and end-to-end package flows that updates every 10 minutes – continuously tracking performance so the network can adjust and self-heal in real time. Deploying agentic "control tower" capabilities on-site with customers, combining data, predictive models and connected services to go beyond shipment tracking – flagging, prioritizing and helping resolve disruptions across complex, multi-carrier networks with full end-to-end visibility and customer control over their data. Simplifying international shipping with next-generation brokerage services that use AI, cross-border data and human expertise to help customers accurately interpret customs requirements worldwide for shipments of all sizes. Improving the cross-border experience with more predictable landed costs at checkout, more accurate product classifications via UPS Export Assure and digital trade documentation via UPS Paperless Invoice – reducing errors and accelerating processing. Enabling faster customs clearance with AI built into UPS's industry-leading brokerage capabilities. Outpacing the competition, 97% of UPS shipments clear customs on the first day of entry. "When trade rules changed, we needed to adjust fast without disrupting our customers," said Michael Garcia, vice president of operations, Audien, the world's largest over-the-counter hearing aid company. "UPS helped us take a realistic, end-to-end look at how our products move so we could stay compliant and protect service. The result was a clearer path forward during a period of uncertainty – without slowing our business."
Finally, as part of its Network of the Future transformation, UPS is redesigning operations to be more data-driven and resilient. With AI embedded across planning, routing and execution, the network will dynamically adapt to changing conditions.
"Every step we're taking supports our strategy – putting customers first, empowering our people and accelerating innovation," Tomé said. "AI isn't a buzzword at UPS. We are building on a rich history of technology embedded in every facet of our business. We are doing the work – using AI to transform global commerce."
About UPS
UPS (NYSE: UPS) is one of the world’s largest companies, with 2025 revenue of $88.7 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s approximately 460,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world. More information can be found at www.ups.com, about.ups.com and investors.ups.com
Proof Over Promises: UPS's Bold AI Initiatives Enhance Products, Services and Customer Experience For more than three years, UPS (NYSE: UPS) has strategically deployed AI to transform global logistics. Today, the company is detailing AI-powered solutions that combine the expertise of its approximately 460,000 employees with technology to shape the future of UPS. These initiatives advance a companywide priority: simplification.
UPS is scaling AI, automation and advanced analytics to improve end-to-end visibility and the overall customer experience; make its global logistics network faster, more predictable and resilient; and ignite innovation.
"After 118 years of reinventing logistics, we have entered a defining moment – using AI to simplify how we work across the enterprise, from customer acquisition and onboarding to how we plan, move and deliver," said Carol B. Tomé, UPS chief executive officer. "We are pairing the deep expertise of our people with the power of AI to drive faster decisions and a better experience for our customers around the globe."
Each year, UPS customers ship packages that generate billions of tracking numbers. With market volatility driving supply chain complexity, customers increasingly demand visibility that goes far beyond an anticipated delivery date. UPS is applying AI to power industry-leading end-to-end visibility and control – and to improve customer support. Specifically, the company is:
Redefining tracking to support more than 98% of customer service requests by the end of 2026, using AI and human expertise across digital and voice channels – including AI-enabled intelligent assistants in more than 20 countries. Equipping customer care teams with AI-powered, real-time shipment insights to resolve inquiries and claims faster. Transforming reverse logistics through Happy Returns, using a conversational, AI-powered experience to simplify the post-purchase journey and reduce returns fraud. Combining RFID and AI-powered tracking to deliver near real-time, package-level visibility – giving customers greater transparency, flexibility and enabling faster, smarter decisions. Further, UPS is delivering AI solutions to better serve customers around the globe including:
Scaling proprietary network planning tools that model "what if" scenarios using real-time inputs – weather, transportation delays, volume forecasts – to stress-test operations and generate execution-ready plans before disruptions impact service. Expanding a real-time digital twin of the global network to include all modes of transportation, creating a digital replica of facilities, air and ground networks, and end-to-end package flows that updates every 10 minutes – continuously tracking performance so the network can adjust and self-heal in real time. Deploying agentic "control tower" capabilities on-site with customers, combining data, predictive models and connected services to go beyond shipment tracking – flagging, prioritizing and helping resolve disruptions across complex, multi-carrier networks with full end-to-end visibility and customer control over their data. Simplifying international shipping with next-generation brokerage services that use AI, cross-border data and human expertise to help customers accurately interpret customs requirements worldwide for shipments of all sizes. Improving the cross-border experience with more predictable landed costs at checkout, more accurate product classifications via UPS Export Assure and digital trade documentation via UPS Paperless Invoice – reducing errors and accelerating processing. Enabling faster customs clearance with AI built into UPS's industry-leading brokerage capabilities. Outpacing the competition, 97% of UPS shipments clear customs on the first day of entry. "When trade rules changed, we needed to adjust fast without disrupting our customers," said Michael Garcia, vice president of operations, Audien, the world's largest over-the-counter hearing aid company. "UPS helped us take a realistic, end-to-end look at how our products move so we could stay compliant and protect service. The result was a clearer path forward during a period of uncertainty – without slowing our business."
Finally, as part of its Network of the Future transformation, UPS is redesigning operations to be more data-driven and resilient. With AI embedded across planning, routing and execution, the network will dynamically adapt to changing conditions.
"Every step we're taking supports our strategy – putting customers first, empowering our people and accelerating innovation," Tomé said. "AI isn't a buzzword at UPS. We are building on a rich history of technology embedded in every facet of our business. We are doing the work – using AI to transform global commerce."
About UPS
UPS (NYSE: UPS) is one of the world’s largest companies, with 2025 revenue of $88.7 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s approximately 460,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world. More information can be found at www.ups.com, about.ups.com and investors.ups.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20260618712848/en/
United Parcel Service (UPS 1.31%) is a package delivery service. That sounds like a simple business, but it is logistically complex and requires huge capital investments. That said, moving packages around the world is vital to the global economy. UPS is an industry leader today and is likely to remain one for the next 10 years and beyond. Which is why now, while the stock is deeply unloved, could be a good time to buy stock.
UPS is going through some changes UPS' revenues have been falling, and its costs have been rising. That's a terrible trend for earnings, which have been pretty ugly. However, there's a good reason for what's happening on this industrial giant's income statement: UPS is in the middle of a major corporate overhaul. It is attempting to become a leaner and more profitable operation.
Image source: Getty Images.
Unfortunately, in the near term, that means spending more on technology and infrastructure while also shifting away from high-volume, low-margin customers. The big story on the customer front was UPS' pre-emptive move to reduce the number of packages it delivers for Amazon (AMZN +0.69%), a large but not particularly profitable customer. But there are signs that the company is making important progress, including the steady rise in revenue per piece in the U.S. market despite lower revenue in the U.S. business. This is, basically, the company's goal. The company has told investors that the second half of 2026 will be the inflection point.
There's still time to get on board To be fair, UPS' stock has already started to move higher after hitting a low in 2025. But the shares are still more then 50% below their 2022 peak, so there's still likely more recovery potential here in the near term. And, if you are looking out over a decade or longer, well, the business has a lot going for it.
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Given the massive infrastructure needed to even participate in the package delivery business, UPS has a strong industry position. Ongoing growth in e-commerce suggests that package delivery will become increasingly important over time. And once the current overhaul is complete, UPS will be a better-structured business to capitalize on that growth.
It isn't easy buying a turnaround stock, given that some turnarounds don't work out. However, UPS' turnaround appears to be taking hold. A decade from now, that will likely be glaringly obvious, which is why you should consider buying the stock now. Otherwise, you may look back and regret passing up the opportunity.
United Parcel Service is investing $48 million in 27 temperature‑controlled facilities as the industry sees a boom in healthcare logistics, CNBC has learned exclusively.
The facilities, located across the Americas, Europe and Asia, are optimized for moving around shipments that need to be kept at certain temperatures. The company said the investment will help it stay ahead of a boom in medicines and pharmaceuticals — like some GLP-1s — that have to be kept at certain temperatures by improving speed and end-to-end chain of custody.
"Our global cross-dock facilities strengthen our end-to-end cold-chain capabilities to ensure critical treatments are delivered safely and reliably to patients around the world," said Kate Gutmann, UPS' president of international, healthcare and supply chain solutions. "This effort – and all of our work in healthcare logistics – extends from a deep understanding that we're doing more than moving packages."
The demand for temperature-sensitive biologics is projected to grow at an 8.3% compound annual growth rate through 2033 and reach a market value of roughly $39.1 billion, according to Growth Market Reports. Many new medicines are required to be stored at specific temperatures to maintain efficacy, UPS said, making healthcare logistics more crucial than before.
According to the World Health Organization, up to 50% of global vaccines are wasted every year, with a significant portion of that coming from cold-chain storage issues.
"These investments reflect our commitment to continue to align our leading end-to-end supply chain to protect innovative treatments and diagnostics, supporting better patient outcomes," UPS Healthcare President John Bolla said in a statement.
UPS' move comes as the industry overall has seen growing investments in the space, especially with the meteoric rise of GLP-1 drugs. Medicines like Novo Nordisk's Wegovy and Ozempic require strict refrigeration and temperature control during transit. A November KFF poll found that 1 in 8 Americans are taking GLP-1s.
UPS CEO Carol Tomé said on the company's first-quarter earnings call in April that healthcare remains one of the company's top priorities and biggest areas of growth.
"Our global healthcare portfolio has gained market share every year since 2021," she said on the call. "And in the first quarter of this year, we generated our first $3 billion healthcare revenue quarter ever, with all three of our segments delivering year-over-year revenue growth."
Tomé added that UPS is committed to continuing to "lean into that space in a meaningful way."
Global cold-chain network investment increases speed, visibility and end-to-end chain of custody for advanced therapies and other temperature-sensitive medicines
ATLANTA--(BUSINESS WIRE)--UPS (NYSE: UPS), the world’s No. 1 provider of complex healthcare logistics, today announced its $48 million investment in 27 temperature-controlled freight cross-dock facilities around the globe. Located in key U.S. and international markets, including Europe, Asia and the Americas, these facilities are optimized for speed and short-term storage between air and ground movements – all while maintaining specific temperature requirements. The announcement strengthens UPS’s global cold-chain network as demand grows for medicines requiring strict temperature ranges of 2 to 8 degrees Celsius, 15 to 25 degrees Celsius and frozen.
UPS is expanding the industry’s largest and most integrated cold-chain network, combining cross-dock investments, engaging in acquisitions and global infrastructure to support the rapid growth and complexity of advanced, temperature-sensitive therapies.
ShareIndustry demand for temperature-sensitive biologics is projected to expand at an 8.3% compound annual growth rate through 2033, reaching an estimated $39.1 billion, according to Growth Market Reports. Meeting this demand requires cold-chain expertise to maintain product quality and safety from manufacturing to patient.
“We have aligned our investments with our Healthcare customers’ specialized needs. Our global cross-dock facilities strengthen our end-to-end cold-chain capabilities to ensure critical treatments are delivered safely and reliably to patients around the world,” said Kate Gutmann, EVP and President of International, Healthcare and Supply Chain Solutions at UPS. “This effort – and all of our work in healthcare logistics – extends from a deep understanding that we’re doing more than moving packages. We are helping patients access the medications and treatments they need.”
Single Provider, Total Control: Integrated Freight Cross-Docks Reduce Risk
27 temperature-controlled freight cross-docks create seamless movement across transportation modes. All facilities are compliant with IATA CEIV Pharma certification, an industry-recognized standard for pharmaceutical handling and quality.A single integrated network eliminates handoffs between providers, reducing risk and increasing control.Greater accountability and real-time oversight protect high-value, temperature-sensitive therapies from excursion and disruption.24/7/365 control tower proactively monitors shipments, flags risks and enables rapid intervention to keep critical products moving.Rise of Advanced Therapies Accelerates Demand for Precision Cold-Chain Solutions
The rapidly growing biologics pipeline is increasing complexity across cold-chain logistics. According to PharmaSource, roughly one in three newly approved drugs today is a biologic more than 85% of those requiring temperature-controlled handling.
As therapies like cell and gene treatments, mRNA platforms and GLP-1 injectables come to market, healthcare supply chains are becoming more complex and risk-sensitive. Temperature excursions are a key driver of that risk, with cold-chain failures estimated to cost up to $35 billion annually and, according to WHO, contributing to up to 50% of global vaccine waste.
“Biologics and personalized treatments are driving better, more targeted care for patients,” said John Bolla, President of UPS Healthcare. “These investments reflect our commitment to continue to align our leading end-to-end supply chain to protect innovative treatments and diagnostics, supporting better patient outcomes.”
Acquisition to Advantage: Investments Are Scaling Complex Healthcare Logistics
UPS’s cross-dock expansion builds on a long-term investment in complex healthcare logistics, strengthened through acquisitions including Bomi Group, Frigo Trans and BPL in Europe and Andlauer Healthcare Group in North America. More recently, UPS expanded its Incheon, Korea air hub to support fast-growing pharmaceutical trade flows, as South Korea imported nearly $9.7 billion in pharmaceutical products in 2025, according to Observatory of Economic Complexity data.
The result is a more responsive supply chain that keeps high-value, time- and temperature-sensitive healthcare shipments moving seamlessly across air, ocean, ground and final mile. As demand grows, UPS’s integrated network is built to manage this complexity today and scale for what’s ahead.
About UPS
UPS (NYSE: UPS) is one of the world’s largest companies, with 2025 revenue of $88.7 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s approximately 460,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. More information can be found at www.ups.com, about.ups.com and investors.ups.com.
About UPS Healthcare
UPS Healthcare delivers unparalleled healthcare logistics expertise to its customers around the world. UPS Healthcare has 19.2+ million square feet of cGMP and GDP-compliant healthcare distribution space globally. Services include inventory management, cold chain packaging and shipping, storage and fulfillment of medical devices, and lab and clinical trial logistics. UPS Healthcare's global infrastructure, its UPS® Premier visibility service, its track and trace technology, and its global quality system are well-suited to meet today's complex logistics demands for the pharmaceutical, medical device, and laboratory diagnostic industries. Visit Healthcare.ups.com for more information.
Sources: Growth Market Reports; PharmaSource; Westwell Lab; World Health Organization; Observatory of Economic Complexity.
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UPS (NYSE: UPS), the world’s No. 1 provider of complex healthcare logistics, today announced its $48 million investment in 27 temperature-controlled freight cross-dock facilities around the globe. Located in key U.S. and international markets, including Europe, Asia and the Americas, these facilities are optimized for speed and short-term storage between air and ground movements – all while maintaining specific temperature requirements. The announcement strengthens UPS’s global cold-chain network as demand grows for medicines requiring strict temperature ranges of 2 to 8 degrees Celsius, 15 to 25 degrees Celsius and frozen.
Industry demand for temperature-sensitive biologics is projected to expand at an 8.3% compound annual growth rate through 2033, reaching an estimated $39.1 billion, according to Growth Market Reports. Meeting this demand requires cold-chain expertise to maintain product quality and safety from manufacturing to patient.
“We have aligned our investments with our Healthcare customers’ specialized needs. Our global cross-dock facilities strengthen our end-to-end cold-chain capabilities to ensure critical treatments are delivered safely and reliably to patients around the world,” said Kate Gutmann, EVP and President of International, Healthcare and Supply Chain Solutions at UPS. “This effort – and all of our work in healthcare logistics – extends from a deep understanding that we’re doing more than moving packages. We are helping patients access the medications and treatments they need.”
Single Provider, Total Control: Integrated Freight Cross-Docks Reduce Risk
27 temperature-controlled freight cross-docks create seamless movement across transportation modes. All facilities are compliant with IATA CEIV Pharma certification, an industry-recognized standard for pharmaceutical handling and quality.A single integrated network eliminates handoffs between providers, reducing risk and increasing control.Greater accountability and real-time oversight protect high-value, temperature-sensitive therapies from excursion and disruption.24/7/365 control tower proactively monitors shipments, flags risks and enables rapid intervention to keep critical products moving.Rise of Advanced Therapies Accelerates Demand for Precision Cold-Chain Solutions
The rapidly growing biologics pipeline is increasing complexity across cold-chain logistics. According to PharmaSource, roughly one in three newly approved drugs today is a biologic more than 85% of those requiring temperature-controlled handling.
As therapies like cell and gene treatments, mRNA platforms and GLP-1 injectables come to market, healthcare supply chains are becoming more complex and risk-sensitive. Temperature excursions are a key driver of that risk, with cold-chain failures estimated to cost up to $35 billion annually and, according to WHO, contributing to up to 50% of global vaccine waste.
“Biologics and personalized treatments are driving better, more targeted care for patients,” said John Bolla, President of UPS Healthcare. “These investments reflect our commitment to continue to align our leading end-to-end supply chain to protect innovative treatments and diagnostics, supporting better patient outcomes.”
Acquisition to Advantage: Investments Are Scaling Complex Healthcare Logistics
UPS’s cross-dock expansion builds on a long-term investment in complex healthcare logistics, strengthened through acquisitions including Bomi Group, Frigo Trans and BPL in Europe and Andlauer Healthcare Group in North America. More recently, UPS expanded its Incheon, Korea air hub to support fast-growing pharmaceutical trade flows, as South Korea imported nearly $9.7 billion in pharmaceutical products in 2025, according to Observatory of Economic Complexity data.
The result is a more responsive supply chain that keeps high-value, time- and temperature-sensitive healthcare shipments moving seamlessly across air, ocean, ground and final mile. As demand grows, UPS’s integrated network is built to manage this complexity today and scale for what’s ahead.
About UPS
UPS (NYSE: UPS) is one of the world’s largest companies, with 2025 revenue of $88.7 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s approximately 460,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. More information can be found at www.ups.com, about.ups.com and investors.ups.com.
About UPS Healthcare
UPS Healthcare delivers unparalleled healthcare logistics expertise to its customers around the world. UPS Healthcare has 19.2+ million square feet of cGMP and GDP-compliant healthcare distribution space globally. Services include inventory management, cold chain packaging and shipping, storage and fulfillment of medical devices, and lab and clinical trial logistics. UPS Healthcare's global infrastructure, its UPS® Premier visibility service, its track and trace technology, and its global quality system are well-suited to meet today's complex logistics demands for the pharmaceutical, medical device, and laboratory diagnostic industries. Visit Healthcare.ups.com for more information.
Sources: Growth Market Reports; PharmaSource; Westwell Lab; World Health Organization; Observatory of Economic Complexity.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260622325874/en/
Key Takeaways UPS is embedding AI across operations, customer service and its global transportation network. UPS aims to handle 98% of customer requests by end-2026 with AI-powered support and tracking. UPS uses digital twins, predictive analytics and AI customs tools to boost logistics efficiency. United Parcel Service, Inc.(UPS - Free Report) is strengthening its competitive position in the logistics industry by embedding artificial intelligence across its operations, customer service platforms and global transportation network. The company's latest AI initiatives are designed to improve shipment visibility, streamline customer interactions and enhance supply-chain efficiency, helping customers navigate an increasingly complex logistics environment. These efforts reflect UPS' commitment to using advanced technology to deliver faster, more reliable and predictable services.
A major highlight of the announcement is UPS' focus on improving customer experience through AI-powered tracking and support capabilities. By combining AI with human expertise, the company aims to handle more than 98% of customer service requests by the end of 2026 while providing near real-time shipment visibility. The integration of RFID technology, intelligent assistants and enhanced claims-resolution tools should enable customers to gain greater control and transparency over their shipments.
UPS is also leveraging AI to optimize network planning and operational resilience. Its expanding digital twin technology and predictive analytics tools allow the company to model potential disruptions, evaluate alternative scenarios and make faster operational decisions. These capabilities can help UPS improve network efficiency, reduce delays and better manage fluctuations caused by weather events, transportation bottlenecks and changing trade regulations.
The initiative further strengthens UPS' international logistics capabilities through AI-driven customs brokerage, trade-compliance solutions and automated documentation processes. Faster customs clearance, more accurate product classification and simplified cross-border shipping could provide meaningful advantages for customers engaged in global trade. Overall, the announcement underscores UPS' long-term strategy of combining technology and operational expertise to drive innovation, improve service quality and support sustainable growth.
UPS’s Share Price PerformanceUPS’s shares have gained 7.4% in three months period against the Transportation - Air Freight and Cargo industry’s 0.8% fall.
Image Source: Zacks Investment Research
UPS’s Zacks RankUPS currently carries a Zacks Rank #3 (Hold).
Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. (EXPD - Free Report) and Teekay Tankers Ltd (TNK - Free Report) .
EXPDcurrently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Expeditors has an expected earnings growth rate of 11.9% for 2026. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.96%.
Teekay Tankers Ltd currently sports a Zacks Rank #1.
TNK has an expected earnings growth rate of 98% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 10.2%.
United Parcel Service (UPS - Free Report) closed the most recent trading day at $107.24, moving +2.27% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.37%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, lost 1.33%.
The stock of package delivery service has risen by 3.8% in the past month, lagging the Transportation sector's gain of 4.68% and overreaching the S&P 500's gain of 2.02%.
Market participants will be closely following the financial results of United Parcel Service in its upcoming release. The company is predicted to post an EPS of $1.67, indicating a 7.74% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $21.51 billion, reflecting a 1.34% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.1 per share and a revenue of $89.78 billion, signifying shifts of -0.84% and +1.26%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for United Parcel Service. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. United Parcel Service is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, United Parcel Service is presently trading at a Forward P/E ratio of 14.77. For comparison, its industry has an average Forward P/E of 15.11, which means United Parcel Service is trading at a discount to the group.
We can additionally observe that UPS currently boasts a PEG ratio of 1.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.62 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 105, positioning it in the top 44% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Key Takeaways UPS is investing $48M in 27 temperature-controlled cross-dock facilities across global markets. The facilities support short-term storage between air and ground while maintaining strict temperature ranges.UPS aims to move time- and temperature-sensitive healthcare shipments across air, ocean, ground. United Parcel Service, Inc. (UPS - Free Report) is strengthening its competitive position in the healthcare logistics industry through its latest $48 million investment in 27 temperature-controlled freight cross-dock facilities globally. These facilities are streamlined for speed and short-term storage between air and ground movements, alongside maintaining specific temperature requirements. These facilities are located in key U.S. and international markets, including Europe, Asia and the Americas.
This latest investment announcement solidifies UPS’ global cold-chain network as demand rises for medicines requiring strict temperature ranges of 2 to 8 degrees Celsius, 15 to 25 degrees Celsius and frozen.
Kate Gutmann, executive vice president and president of International, Healthcare and Supply Chain Solutions at United Parcel Service, stated, “We have aligned our investments with our Healthcare customers’ specialized needs. Our global cross-dock facilities strengthen our end-to-end cold-chain capabilities to ensure critical treatments are delivered safely and reliably to patients around the world. This effort – and all of our work in healthcare logistics – extends from a deep understanding that we’re doing more than moving packages. We are helping patients access the medications and treatments they need.”
To ConcludeWith therapies like cell and gene treatments, mRNA platforms and GLP-1 injectables evolving, healthcare supply chains are becoming more sensitive, and temperature regulations are a key element of the system. The thriving biologics pipeline is making the cold-chain logistics more complex.
Given that the industry demand for temperature-sensitive biologics is anticipated to increase, the latest investment decision by UPS seems to be a strategic business move on its part.
This is not the first time UPS has widened its network in healthcare logistics through acquisitions. To name a few, these include the acquisitions of Bomi Group in 2022, Frigo Trans and BPL in Europe and Andlauer Healthcare Group in North America in 2025. These were followed by the recent expansion of UPS’s Incheon, Korea air hub in 2026 to help the expanding pharmaceutical trade flows.
John Bolla, president of UPS Healthcare, stated, “Biologics and personalized treatments are driving better, more targeted care for patients. These investments reflect our commitment to continue to align our leading end-to-end supply chain to protect innovative treatments and diagnostics, supporting better patient outcomes.”
The aim is to maintain a supply chain which provides both time- and temperature-sensitive healthcare shipments smoothly across air, ocean, ground and final mile.
UPS’ Zacks Rank & Stocks to ConsiderUnited Parcel Service currently carries a Zacks Rank #3 (Hold).
Investors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. (EXPD - Free Report) and Teekay Tankers Ltd (TNK - Free Report) .
EXPD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Expeditors has an expected earnings growth rate of 11.9% for 2026. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.96%.
Teekay Tankers Ltd currently sports a Zacks Rank #1.
TNK has an expected earnings growth rate of 98% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 10.2%.
In the latest trading session, United Parcel Service (UPS - Free Report) closed at $110.02, marking a +1.09% move from the previous day. This move outpaced the S&P 500's daily loss of 0.57%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 1.15%.
Coming into today, shares of the package delivery service had gained 13.92% in the past month. In that same time, the Transportation sector gained 7.16%, while the S&P 500 gained 2.14%.
Market participants will be closely following the financial results of United Parcel Service in its upcoming release. The company is forecasted to report an EPS of $1.67, showcasing a 7.74% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $21.51 billion, reflecting a 1.34% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $7.1 per share and a revenue of $89.78 billion, demonstrating changes of -0.84% and +1.26%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for United Parcel Service. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. United Parcel Service is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, United Parcel Service is holding a Forward P/E ratio of 15.33. Its industry sports an average Forward P/E of 15.69, so one might conclude that United Parcel Service is trading at a discount comparatively.
It is also worth noting that UPS currently has a PEG ratio of 1.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. UPS's industry had an average PEG ratio of 1.67 as of yesterday's close.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 109, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow UPS in the coming trading sessions, be sure to utilize Zacks.com.
So far this year, shares of United Parcel Service (UPS 0.51%), better known as UPS, have been choppy. On one hand, investors know full well that the transportation company is in transition mode.
On the other hand, impatience has led many in the market to sell or avoid the delivery company's shares on concerns that its turnaround efforts will fail to meet expectations. While frustrating for existing investors, this signals a strong opportunity for those who have yet to enter a position.
I believe that what appears to be a headwind is, in actuality, a major tailwind for the company and the stock. Therefore, the market's lukewarm sentiment regarding this transportation stock works in your favor.
Image source: Getty Images.
Why UPS is phasing out Amazon deliveries Early last year, UPS first unveiled its plans to reduce its Amazon delivery volume by 50% before the second half of this year. UPS's reasoning for this was pretty straightforward. While Amazon was UPS's largest customer by revenue, making up 11.8% of overall sales in 2024, the comapany's orders made up 20% to 25% its total U.S. package volume.
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By removing this low-margin package delivery volume, UPS could both reduce labor costs and devote newly opened-up capacity to delivering higher-volume packages. Yet, while there is big long-term potential with this plan, so far, other concerns have weighed more heavily on the minds of UPS stock investors.
Throughout 2025, issues like trade tensions and a weakening macro backdrop negatively affected shipping demand. Results fell short of expectations, and the company temporarily stopped issuing guidance. All of this led to a drop in investor confidence, triggering a sharp pullback in shares.
Although UPS shares have bounced back since late 2025, the stock has since stayed rangebound around $100 per share. Despite recently delivering better-than-expected results, as mentioned above, investors have been impatient about the pace of improved operating results.
Now's the perfect time to hop aboard UPS's turnaround may not be happening as quickly as the market would like, but it is indeed happening. Overall, UPS's revenue and earnings declined year over year. Again, however, this is due to the Amazon phase-out. In its pivot toward higher-margin customers, UPS continues to make improvements.
As discussed on its latest post-earnings conference call, daily volumes among small and medium-sized businesses (SMBs) rose 1.6% during the first quarter of 2026. Overall revenue per package was up 6.5%, while the company's revenue from delivering healthcare products hit a record $3 billion. Further incremental improvements could follow.
Management reiterated its 2026 guidance. Sell-side analysts remain bullish as well, anticipating earnings per share (EPS) to stabilize in 2026 before rising 12.2% to $8 per share in 2027. In the years ahead, shares could rally in line with earnings growth or perhaps even benefit from multiple expansion.
UPS trades at 14 times forward earnings but has traded at between 15 and 20 times earnings in the past. While you wait for further improved results, the stock remains a high-yield dividend stock. Currently, shares have a forward dividend yield of 6.6%. UPS is a strong opportunity despite the mixed sentiment.
Kylie Kelce Partners with Pull-Ups® to help Tackle the Highs, Lows and "Uh-Oh" Moments of Potty Training
, /PRNewswire/ -- Pull-Ups®, a trusted brand and leader in potty training for nearly four decades, is proud to introduce Learning Layer™ technology, a new innovation designed to support one of parenting's most unpredictable milestones.
PULL-UPS® DEBUTS LEARNING LAYER™ TECHNOLOGY, A NEW INNOVATION TO HELP KIDS LEARN THE DIFFERENCE BETWEEN WET AND DRY
PULL-UPS® DEBUTS LEARNING LAYER™ TECHNOLOGY, A NEW INNOVATION TO HELP KIDS LEARN THE DIFFERENCE BETWEEN WET AND DRY Many potty training methods either help kids notice accidents, or contain mess, but not both – and occasionally neither. That's where the new Pull-Ups Learning Layer™ comes in. This innovation reimagines what a training pant can be by briefly feeling wet, before drying, helping toddlers notice the sensation of wetness while still remaining dermatologist-tested and safe for sensitive skin. When accidents happen, fluid is momentarily held in the Learning Layer, giving kids time to recognize that wet feeling before it's absorbed into the core – to help them learn wet from dry.
"The Pull-Ups Learning Layer is an important innovation in how we help toddlers learn one of the most essential early skills – potty training, while understanding the difference between feeling wet and dry," said Dan Jackson, North American Vice President of Pull-Ups. "By making that sensation more noticeable while still delivering the protection families rely on, we're helping turn everyday moments into meaningful learning experiences and build Big Kid® Confidence."
To help bring this innovation to life, Pull-Ups is partnering with Kylie Kelce, mom of four and host of the popular Wave Original series, Not Gonna Lie. Known for her honest, unfiltered take on parenting and drawing on her own potty training journeys, Kelce will help showcase the real, often messy moments families experience.
Kelce shared, "Potty training will humble you – fast. I've learned that every kid is different, but anything that helps them understand what's happening, and makes those moments a little less messy, is a win. Pull-Ups have always been part of my potty training routine, but Learning Layer™ is a total game changer this time around by helping my kid learn the difference of feeling wet from dry."
As part of the Learning Layer launch, Pull-Ups is also expanding the role of its animated spokes characters, Terd and Yureen, two emotional sidekicks that help bring the realities of potty training to life. Terd, the more cautious of the pair, represents those "uh-oh" moments of doubt and hesitation, while Yureen embodies the confidence, optimism and encouragement that keeps families moving forward. Together, they reflect the full spectrum of the potty training journey, helping make the experience feel relatable, less intimidating and even a little more humorous, so parents can feel supported, understood and never judged along the way.
Pull-Ups with Learning Layer technology is available now at retailers nationwide, including Target, Walmart, Amazon and more. To learn more, visit Pull-Ups.com or follow us on social media.
About Kimberly-Clark
Kimberly-Clark (NASDAQ: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries and territories. Our portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, Goodnites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 70 countries. Our company's purpose is to deliver Better Care for a Better World. We are committed to using sustainable practices designed to support a healthy planet, build strong communities, and enable our business to thrive for decades to come. To keep up with the latest news and learn more about the company's more than 150-year history of innovation, visit the Kimberly-Clark website.
MEDIA CONTACTS
Alison Brod Marketing & Communications
[email protected]
PULL-UPS CONTACTS
Kimberly-Clark Media Relations
[email protected]
United Parcel Service (UPS - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this package delivery service have returned -6.1%, compared to the Zacks S&P 500 composite's +4.6% change. During this period, the Zacks Transportation - Air Freight and Cargo industry, which UPS falls in, has lost 5.2%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
UPS is expected to post earnings of $1.67 per share for the current quarter, representing a year-over-year change of +7.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +6.5%.
The consensus earnings estimate of $7.1 for the current fiscal year indicates a year-over-year change of -0.8%. This estimate has changed +0.4% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $7.9 indicates a change of +11.2% from what UPS is expected to report a year ago. Over the past month, the estimate has changed +0.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for UPS.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of UPS, the consensus sales estimate of $21.51 billion for the current quarter points to a year-over-year change of +1.3%. The $89.78 billion and $93.42 billion estimates for the current and next fiscal years indicate changes of +1.3% and +4.1%, respectively.
Last Reported Results and Surprise HistoryUPS reported revenues of $21.2 billion in the last reported quarter, representing a year-over-year change of -1.6%. EPS of $1.07 for the same period compares with $1.49 a year ago.
Compared to the Zacks Consensus Estimate of $21.03 billion, the reported revenues represent a surprise of +0.82%. The EPS surprise was +2.88%.
Over the last four quarters, UPS surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
UPS is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about UPS. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Investors love dividend stocks, especially the blue-chip variety, because they offer a significant income stream and have massive total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. Blue-chip stocks are shares of large, well-established, financially stable companies with a consistent and reliable performance history. They are often considered less risky and are a popular choice for long-term investors. Additionally, nearly all leaders in the category pay dependable, recurring dividends each quarter, regardless of economic conditions. The term “blue chip” originated in poker, where it refers to the highest-value chip.
Here are some characteristics of blue-chip stocks:
Market capitalization: Blue-chip stocks are often large-cap companies with market valuations of $10 billion or more. Dividends: Most blue-chip stocks pay dividends, which are regular payments made to investors from a company’s revenue. Market indexes: Blue-chip stocks are often included in major market indexes, such as the S&P 500, the S&P 100, and the Dow Jones Industrial Average. Volatility: Blue-chip stocks are usually less volatile than other stocks. We screened our 24/7 Wall St. blue-chip dividend research database to identify top blue-chip companies that have disappointed so far this year. While all are regarded as some of the best companies in the world, for various reasons, they have underperformed this year and look poised to rebound later in 2026. All are rated Buy at top Wall Street firms that we cover at 24/7 Wall St.
Why do we cover dividend blue-chip stocks?
Since 1926, dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
Clorox With products that never go out of style and shares down over 11% in 2026, this is the perfect buy for conservative investors, and it pays a 5.44% dividend. Clorox (NYSE: CLX | CLX Price Prediction) is a multinational manufacturer and marketer of consumer and professional products. Despite some earnings turbulence in recent years, Clorox has maintained its dividend streak and is expected to cross the 50-year mark in 2026.
The company operates through four segments:
Health and Wellness Household Lifestyle International The Health and Wellness segment consists of cleaning, disinfecting, and professional products marketed and sold under these brands:
Clorox Clorox2 Pine-Sol Scentiva Tilex Liquid-Plumr Formula 409 This segment includes laundry additives, home care products, bags and wraps, cat litter, and water filtration.
Its Household segment consists of bags and wraps, cat litter, and grilling products marketed and sold under the Glad, Fresh Step, Scoop Away, and Kingsford brands in the United States.
The Lifestyle segment consists of food, water-filtration, and natural personal care products marketed and sold under the Hidden Valley, Brita, and Burt’s Bees brands. The International segment consists of products sold outside the United States, including laundry additives, home care products, bags and wraps, cat litter, water filtration products, and others.
Jefferies has a Buy rating with a $125 target price.
Home Depot Home Depot (NYSE: HD) is the largest home improvement retailer in the United States. The stock is down more than 14% in 2026, amid sluggish housing market conditions and consumer spending pressures that are affecting the company’s earnings. However, with mortgage interest rates and home prices still high, many people will likely stay put, and this is the top retailer to own now. It pays a solid 2.21% dividend.
Home Depot operates as a home improvement retailer, selling various:
Building materials Home improvement products Lawn and garden products Décor products Facilities maintenance, repair, and operations products Its offerings extend beyond products. The company also provides a wide range of installation services for:
Flooring Water heaters Baths Garage doors Cabinets Cabinet makeovers Countertops Sheds Furnaces Central air systems Windows It further enhances its customer experience with tool and equipment rental services. This diverse portfolio of products and services positions Home Depot for potential market growth and resilience.
Home Depot primarily serves:
Homeowners and professional renovators/remodelers General contractors Maintenance professionals Handypersons Property managers Building service contractors Specialty tradespeople, such as electricians, plumbers, and painters It also sells its products through websites, including homedepot.com, homedepot.ca, and homedepot.com.mx; blinds.com, an online site for custom window coverings; thecompanystore.com, an online site for textiles and décor products; and through Home Depot stores.
Piper Sandler has an Overweight rating and a massive $421 target price.
McDonald’s McDonald’s (NYSE: MCD) is an American multinational fast-food chain. The stock is down over 10% in 2026, and it pays a solid 2.55% dividend. The legacy fast-food heavyweight is a solid pick when the economy goes south or north and is among the safest large-cap restaurant ideas. McDonald’s is approaching the 50-year mark of dividend increases and is widely seen as a likely entrant to the Dividend Kings, given its consistent dividend growth and durable business model.
McDonald’s operates and franchises McDonald’s restaurants in the United States and internationally. Approximately 95% of McDonald’s roughly 13,500 U.S. restaurants are owned and operated by independent business owners. The company’s restaurants offer:
Hamburgers and cheeseburgers Chicken sandwiches and nuggets Fries Salads Shakes Frozen desserts Sundaes Soft serve cones Bakery items Soft drinks Coffee Muffins Sausages Biscuit and bagel sandwiches Oatmeal Hash browns Breakfast burritos Hotcakes J.P. Morgan has an Overweight rating with a $305 target price.
Procter & Gamble Procter & Gamble (NYSE: PG) was founded more than 185 years ago as a soap-and-candle company, and today it focuses on providing branded consumer packaged goods worldwide. The stock is down over 14% from its 52-week high. The company has maintained strong margins and continued its 69-year dividend-increase streak, which yields 2.95%.
The company’s segments include 5
Beauty Grooming Health Care Fabric & Home Care Baby Feminine & Family Care Its products are sold in approximately 180 countries and territories primarily through mass merchandisers, e-commerce, including social commerce channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, including airport duty-free stores, high-frequency stores, pharmacies, electronics stores, and professional channels. It also sells directly to individual consumers. It has operations in approximately 70 countries.
Procter & Gamble offers products under such brands as:
Head & Shoulders Herbal Essences Pantene Rejoice Olay Old Spice Safeguard Secret SK-II Braun Gillette Venus Crest Oral-B Ariel Downy Gain Tide Always Always Discreet Tampax Bounty Jefferies has a Buy rating with a $179 target price objective.
UPS United Parcel Service (NYSE: UPS) announced it is cutting its shipping volume for e-commerce giant Amazon by more than 50% by the second half of 2026. The company said the move is part of its broader strategy to focus on more profitable, less risky business segments. The package delivery giant was one of the worst performers among top dividend picks, down 6% in 2026, and now has a dividend yield of 6.49%. It faces headwinds from the decline in its Amazon business and from expectations of slower economic growth.
The company provides a range of integrated logistics solutions for customers in more than 200 countries and territories. It operates through two segments:
U.S. Domestic Package International Package The U.S. Domestic Package segment offers a range of domestic air and ground package transportation services within the United States. Its air portfolio offers time-definite, same-day, next-day, two-day, and three-day delivery alternatives as well as air cargo services. The ground network enables customers to ship using its day-definite ground service. UPS SurePost provides residential ground service for customers with non-urgent, lightweight residential shipments.
The International Package segment comprises its small package operations in Europe, the Indian subcontinent, the Middle East and Africa, Canada, Latin America, and Asia. It offers a selection of guaranteed day- and time-definite international shipping services. Its supply chain solutions consist of forwarding, logistics, and other businesses.
Jefferies has a Buy rating with a $130 price objective.
It has been about a month since the last earnings report for United Parcel Service (UPS - Free Report) . Shares have lost about 2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is UPS due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for United Parcel Service, Inc. before we dive into how investors and analysts have reacted as of late.
Earnings Beat at UPS in Q1Quarterly earnings per share (excluding 5 cents from non-recurring items) of $1.07 beat the Zacks Consensus Estimate of $1.04 but declined 28.2% year over year. Revenues of $21.2 billion surpassed the Zacks Consensus Estimate of $21 billion but decreased 1.6% year over year.
U.S. Domestic Package revenues of $14.1 billion (above our estimate of $13.8 billion) decreased 2.3% year over year, owing to an expected decline in volume. Revenue per piece grew 8.3% year over year. Segmental operating profit (adjusted) fell 44.1% year over year to $565 million. The adjusted operating margin for the segment was 4%.
Revenues in the International Package division totaled $4.54 billion (above our estimate of $4.38 billion), which increased 3.8% year over year, owing to a 10.7% increase in revenue per piece. Segmental operating profit (adjusted) totaled $551 million, down 15.7% year over year. The adjusted operating margin for the segment was 12.1%.
Supply Chain Solutions’ revenues of $2.53 billion (below our estimate of $2.81 billion) decreased 6.5% year over year, owing to a decline in volume in the Mail Innovations business. Operating profit (on an adjusted basis) rose more than 100% year over year to $206 million. The adjusted operating margin for the segment was 8.1%.
The overall adjusted operating margin was 6.2%.
UPS’ 2026 Outlook ReaffirmedManagement has reinstated full-year 2026 sales guidance, projecting revenues of approximately $89.7 billion, above the 2025 reported figure of $88.7 billion.
Adjusted operating margin is still expected to be around 9.6%. Capital expenditures are estimated to be around $3 billion, with dividend payments expected to be around $5.4 billion (subject to board approval). The effective tax rate is expected to be around 23%.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 5.61% due to these changes.
VGM ScoresAt this time, UPS has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, UPS has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Strong cross-border capabilities and fast transit times support production-critical supply chains throughout North America
ATLANTA--(BUSINESS WIRE)--UPS (NYSE: UPS) today announced it has invested nearly $50 million in network capabilities and dedicated industry teams to help automotive and industrial manufacturers operate with greater resilience and precision. As supply chains face ongoing pressure from automation, geopolitical shifts and evolving regulatory demands, UPS is uniquely positioned to help customers navigate complexity through its end-to-end global network, advanced technology and deep industry expertise.
UPS announced it has invested nearly $50 million in network capabilities and dedicated industry teams to help automotive and industrial manufacturers operate with greater resilience and precision.
Share Building on this, UPS announced the expansion of its North American Air Freight (NAAF) capabilities – introducing time-definite heavy air freight service to and from Mexico for the first time and extending coverage across North America to better support production-critical supply chains. Unlike fragmented, multi-carrier models, UPS integrates transportation, brokerage and warehousing into a single solution, reducing handoffs and simplifying cross-border shipping.
“Our automotive and industrial customers want an easy button for logistics,” said Matt Guffey, UPS chief commercial and strategy officer. “They need reliability, visibility and a partner that understands their supply chains – end to end, today and tomorrow. We have made strategic investments to build the team and the network that meets their needs unlike any other in the industry.”
Beginning in August, NAAF will offer 1-, 2- and 3-day service options to and from Mexico that help manufacturers move high-value, time-sensitive parts with greater speed and predictability. For UPS customers, this means fewer delays at the border, improved visibility from origin to destination and greater confidence in keeping production lines running.
A Network Built to Serve Automotive and Industrial Manufacturers
In recent years, UPS has modernized its network to improve reliability, visibility and speed — delivering measurable results for every customer, including automotive and industrial manufacturers:
Competitive value for less-than-truckload shipments with UPS Ground with Freight Pricing for shipments over 150 lbs., ideal for automotive and industrial shippers seeking small-package reliability. Expanded early delivery reach with UPS delivering to more U.S. businesses next day by 10:30 a.m. than other major carriers, a critical advantage for tight production schedules. Enhanced visibility and control through automation across 67.5% of UPS facilities and RFID sensing technology embedded throughout UPS’s network. On-demand, after-hours delivery via Roadie, a UPS Company, enabling parts to be delivered same-day to dealerships and repair shops securely without requiring staff on-site. David MacNeil, chief executive officer of WeatherTech, weighed in on his company’s experience working with UPS to ship automotive accessories: “When we know what to expect from shipping, it helps us plan with confidence. That clarity allows us to stay focused on delivering a great experience for our customers.”
Dedicated Industry Teams Serving Automotive and Industrial Customers
Complementing its end-to-end network, UPS has established a dedicated team of more than 300 subject matter experts with deep automotive and industrial manufacturing expertise – supported by thousands of UPSers across the network who are ready to serve and deliver.
This combination of network investment and expertise comes at a critical time, as supply chain performance has become a defining factor in speed to market, cost control and long-term competitiveness for manufacturers around the world.
Industrial and automotive companies face pressure to modernize and manage complex global supply chains. UPS is investing to help them move faster, gain control and operate with confidence — delivering industry-specific solutions at competitive pricing that simplify operations, improve visibility and keep supply chains running.
About UPS
UPS (NYSE: UPS) is one of the world’s largest companies, with 2025 revenue of $88.7 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s approximately 460,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. More information can be found at www.ups.com, about.ups.com and investors.ups.com.
UPS (NYSE: UPS) today announced it has invested nearly $50 million in network capabilities and dedicated industry teams to help automotive and industrial manufacturers operate with greater resilience and precision. As supply chains face ongoing pressure from automation, geopolitical shifts and evolving regulatory demands, UPS is uniquely positioned to help customers navigate complexity through its end-to-end global network, advanced technology and deep industry expertise.
Building on this, UPS announced the expansion of its North American Air Freight (NAAF) capabilities – introducing time-definite heavy air freight service to and from Mexico for the first time and extending coverage across North America to better support production-critical supply chains. Unlike fragmented, multi-carrier models, UPS integrates transportation, brokerage and warehousing into a single solution, reducing handoffs and simplifying cross-border shipping.
“Our automotive and industrial customers want an easy button for logistics,” said Matt Guffey, UPS chief commercial and strategy officer. “They need reliability, visibility and a partner that understands their supply chains – end to end, today and tomorrow. We have made strategic investments to build the team and the network that meets their needs unlike any other in the industry.”
Beginning in August, NAAF will offer 1-, 2- and 3-day service options to and from Mexico that help manufacturers move high-value, time-sensitive parts with greater speed and predictability. For UPS customers, this means fewer delays at the border, improved visibility from origin to destination and greater confidence in keeping production lines running.
A Network Built to Serve Automotive and Industrial Manufacturers
In recent years, UPS has modernized its network to improve reliability, visibility and speed — delivering measurable results for every customer, including automotive and industrial manufacturers:
Competitive value for less-than-truckload shipments with UPS Ground with Freight Pricing for shipments over 150 lbs., ideal for automotive and industrial shippers seeking small-package reliability. Expanded early delivery reach with UPS delivering to more U.S. businesses next day by 10:30 a.m. than other major carriers, a critical advantage for tight production schedules. Enhanced visibility and control through automation across 67.5% of UPS facilities and RFID sensing technology embedded throughout UPS’s network. On-demand, after-hours delivery via Roadie, a UPS Company, enabling parts to be delivered same-day to dealerships and repair shops securely without requiring staff on-site. David MacNeil, chief executive officer of WeatherTech, weighed in on his company’s experience working with UPS to ship automotive accessories: “When we know what to expect from shipping, it helps us plan with confidence. That clarity allows us to stay focused on delivering a great experience for our customers.”
Dedicated Industry Teams Serving Automotive and Industrial Customers
Complementing its end-to-end network, UPS has established a dedicated team of more than 300 subject matter experts with deep automotive and industrial manufacturing expertise – supported by thousands of UPSers across the network who are ready to serve and deliver.
This combination of network investment and expertise comes at a critical time, as supply chain performance has become a defining factor in speed to market, cost control and long-term competitiveness for manufacturers around the world.
Industrial and automotive companies face pressure to modernize and manage complex global supply chains. UPS is investing to help them move faster, gain control and operate with confidence — delivering industry-specific solutions at competitive pricing that simplify operations, improve visibility and keep supply chains running.
About UPS
UPS (NYSE: UPS) is one of the world’s largest companies, with 2025 revenue of $88.7 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s approximately 460,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. More information can be found at www.ups.com, about.ups.com and investors.ups.com.
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Wall Street doesn't like to wait, with impatient investors often drawn to today's best-performing businesses. That's understandable to some degree, but it ignores the fact that every business will eventually face adversity. When adversity strikes, patient investors who can think long-term may find they have an edge over those who are overly short-term focused.
That's the big picture today with United Parcel Service (UPS 0.51%) and Stanley Black & Decker (SWK +0.59%). Both of these industrial stocks are working on turnarounds and seeing early signs of success. But investors aren't interested because financial results are still relatively weak. Here's why, a decade from now, you may regret not buying these stocks.
Image source: Getty Images.
UPS and Stanley Black & Decker are necessity businesses While nobody needs to send a package or buy a tool, per se, the world wouldn't work the way it does without the products and services that UPS and Stanley Black & Decker provide. That's the long-term underpinning that supports both of them. Of course, it also helps that both are industry giants, with well-established brands and customer relationships. Neither will be easily replaced.
From a big-picture perspective, they are both good companies. In fact, Stanley Black & Decker is a Dividend King, with over 50 years of consecutive annual dividend increases. You can't create a record like that by accident; it requires consistent, strong execution throughout the entire business cycle. UPS went public only in 1999, so it doesn't have the same track record. However, the dividend has generally trended higher since its IPO.
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That said, neither of these two businesses is hitting on all cylinders today. That's why the stocks are down materially from their recent highs, pushing UPS' yield up to 6.4% and Stanley Black & Decker's to 4.2%. Both are at the high end of the historical yield range for these leading industrial companies. That suggests there's an opportunity here for investors who think long term.
The problems are slowly getting better Both UPS and Stanley Black & Decker are in the middle of business overhauls. Each company is looking to slim down and cut costs, focusing on their most profitable businesses. They have each sold businesses, closed less productive facilities, and increased spending on technology. Stanley Black & Decker has also been heavily focused on reducing leverage after a debt-funding acquisition spree. Wall Street appears to be taking a show-me attitude in both cases.
Only the early signs of success have already started to roll in, and Wall Street isn't taking notice. For example, UPS has seen its revenue per piece in the U.S. market increase for several consecutive quarters, despite overall revenue declines in the U.S. business. A part of the process has involved reducing the volume of packages it carries from low-margin customers like Amazon (AMZN 1.24%). So you would expect to see revenues decline even as profit margins improved. It looks like the company's turnaround remains solidly on track.
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Stanley Black & Decker, meanwhile, has seen its gross profit margin improve and its leverage fall over the last couple of years. Again, that's exactly the goal the company is working toward, and Wall Street doesn't seem to care because it is focused on the near-term issues around inflation and tariffs.
Get paid well to wait for investors to notice If you buy these two high-yield industrial stocks today, you are setting yourself up to collect an attractive passive income stream. You are also getting in early on the turnarounds that are starting to take shape at UPS and Stanley Black & Decker, which means you could see capital appreciation, too. Neither stock is likely to be an immediate success story, but if you don't buy them today, you'll likely look back a decade from now and wish you had.
The S&P 500 index (^GSPC +0.50%) is not for the faint of heart today, trading near all-time highs even as the world faces material economic and geopolitical headwinds. The stocks of high-yield Stanley Black & Decker (SWK +0.59%) and United Parcel Service (UPS 0.51%), by contrast, have each fallen dramatically over the past five years. They are turnaround stories that are paying you well to wait for business upturns.
Here's why you may want to buy Stanley Black & Decker and UPS today and hold on for decades. Notably, one is a Dividend King that has continued to hike its dividend despite the business headwinds it has faced.
Image source: Getty Images.
Stanley Black & Decker is starting to see material progress Under previous leadership, Stanley Black & Decker went on an aggressive acquisition spree. This bulked up the company's tools business, adding well-recognized and respected brands to the portfolio and expanding the company into new areas. However, it also left the company with a heavy debt load and bloated costs, both of which needed to be addressed.
To do that, the company has been selling non-core assets and streamlining its business. It has not been a quick or easy process, with adjusted gross margin dropping to 22.1% in the second half of 2022. Net debt to adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was 5.9X at the end of 2023. However, the company's efforts have been working, with adjusted gross margin expected to fall between 33% and 34% in the second half of 2026 and net debt to adjusted EBITDA down to 2.5x by the end of the year.
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Through it all, this Dividend King has continued to add to its over 50-year-long dividend streak. Despite material turnaround progress, the stock is still down 60% over the past five years, and trades with a historically high yield of 4.1%. This industrial tool company doesn't appear to be getting the credit it deserves, which could make it a solid long-term hold for investors who think in decades.
United Parcel Service's business is about to turn UPS isn't a Dividend King, but this industrial giant's dividend has generally trended higher since its initial public offering in late 1999. The yield is a historically high 6.1% today. Management has basically stated that the goal is to hold the dividend steady in 2026. That's important because management also believes that its turnaround will hit an inflection point in the second half of the year.
The company is one of the largest package delivery companies in the world. It provides a vital, complex service that would be hard to replicate. However, it is also one that requires material capital investment. After getting a bit bloated, UPS has been streamlining, selling non-core assets, upgrading technology, and shifting toward more profitable business. It has not been an easy process, but the company is showing progress. Notably, its revenue per piece in the U.S. market is rising despite lower revenues. Smaller and more profitable is the long-term goal, so this is a good sign.
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If you buy the stock now, you can get in ahead of the expected inflection point in the second half of the year. And you can hold on for the long term, collecting a lofty yield, as the company benefits from increased demand for package deliver in the digital age.
Not for the faint of heart, but attractive nonetheless To be fair, neither UPS nor Stanley Black & Decker will likely interest risk-averse dividend investors. However, with the S&P 500 index offering a tiny 1.1% yield and trading near all-time highs, it isn't exactly an attractive dividend option, either. If you can handle a little uncertainty, high-yielding UPS and Stanley Black & Decker are doing what they said they would do and paying you well to wait for the market to catch on to the turnaround success they are achieving.
