3 Reasons to Buy United Parcel Service Stock Like There's No Tomorrow

Core Viewpoint - United Parcel Service (UPS) is undergoing a turnaround effort, showing early signs of improvement, making it an attractive investment opportunity despite its current challenges [1][8]. Group 1: Market Sentiment - UPS is currently viewed negatively by investors, with shares down over 50% from their peak in early 2022 due to a return to normal demand after the pandemic [2][10]. - The company has established a robust infrastructure for package delivery, which is difficult to replicate, indicating long-term value despite current market pessimism [4][5]. Group 2: Valuation Metrics - UPS's price-to-sales ratio is approximately 0.9x, significantly lower than its five-year average of 1.4x, suggesting the stock is undervalued [6]. - The price-to-earnings ratio is just under 15x, compared to a longer-term average of around 18x, further indicating a potential buying opportunity [6]. - The price-to-book value ratio stands at 5.1x, well below its five-year average of 8.5x, reinforcing the notion of attractive pricing [6][7]. Group 3: Operational Improvements - UPS management has recognized inefficiencies and is implementing a comprehensive overhaul, including exiting unprofitable business lines and investing in technology [10][11]. - Early results show positive trends, with revenue per piece in the U.S. market increasing by 5.5% in Q2 2025 and 9.8% in Q3 2025, indicating that management's efforts are beginning to yield results [11][12].