1 Reason I'm Still Keeping an Eye on UPS Stock, Despite Recent Lows

Core Insights - United Parcel Service (UPS) has experienced a significant decline in stock price, dropping 32% year to date and approximately 60% from its pandemic-era highs [1][2] - The decline in earnings is attributed to increased labor costs, narrowed margins due to weaker U.S. volumes, and tariff challenges [2] - UPS is shifting its focus towards high-margin clients, particularly in the healthcare logistics sector, which could lead to a turnaround in performance [2][6] Financial Performance - The stock price of UPS has fallen by double digits in 2025, reflecting broader challenges in the transportation sector [1] - Total healthcare revenue for UPS was $10.5 billion in 2024, with ambitions to double this to $20 billion by 2026 [4] Strategic Moves - UPS strategically ended its partnership with Amazon, which accounted for about 11.8% of its revenue last year, to focus on higher-margin clients [3] - The company has made acquisitions, such as Andlauer Healthcare in April 2025 and Bomi in 2022, to enhance its healthcare logistics capabilities [4] Market Outlook - The healthcare sector is seen as a promising area for UPS, as clients prioritize reliability over cost, potentially leading to higher-margin deliveries [5] - The combination of healthcare logistics and other high-margin business segments could inspire renewed investor confidence and reverse the current downward trend in stock price [6]