Key Points UPS is undergoing a major cost reduction plan that could help it become more profitable. Tariff uncertainty and lower package volumes in the U.S. have pressured its stock. 10 stocks we like better than United Parcel Service › Everyone knows United Parcel Service (NYSE: UPS) for its brown trucks. Fewer may have noticed, however, that the company's stock has been tanking in 2025. The stock has fallen sharply since its early pandemic-era highs. A slew of not-so-great news -- from the inten ...

United Parcel Service's stock has plunged, but it is making important changes to its business that shouldn't be ignored.Shares of United Parcel Service (UPS 1.41%) got caught up in a big story during the coronavirus pandemic period. When Wall Street realized, yet again, that trees don't grow to the sky, UPS, as it is more commonly known, saw its stock price crater. And the company just made things worse when management undertook a major business overhaul.But there are big moves being made that could set the ...

Core Viewpoint - UPS' stock has experienced a significant decline of 60% from its 2022 highs, now trading below pre-pandemic levels, which is crucial for potential investors to consider [1][6]. Business Overview - UPS operates a complex logistics network that is difficult to replicate, evidenced by its continued partnership with Amazon despite Amazon's own delivery service investments [2][4]. - The core business of UPS revolves around package delivery, which encompasses pickup, routing, and delivery, each requiring substantial operational effort [3][4]. Market Dynamics - The demand for package delivery is expected to persist as long as people reside in different locations, indicating a stable long-term business model [2][6]. - The stock price decline is attributed to a post-pandemic adjustment after an initial surge in demand, which was overestimated by Wall Street [6][8]. Strategic Initiatives - UPS is actively modernizing its operations by investing in technology, closing older distribution centers, and refocusing on more profitable segments, including reducing its relationship with Amazon due to low-margin deliveries [7][8]. - These strategic changes have led to lower revenue and increased costs, raising concerns among investors despite the long-term benefits of modernization [8][9]. Dividend Considerations - The current dividend yield stands at 7.7%, which raises concerns about a potential dividend cut, especially as the payout ratio approaches 100% [9][10]. - Historically, the payout ratio has been in the 70% to 80% range, but the ongoing business overhaul may necessitate a reset of the dividend [10][12]. Long-term Investment Potential - UPS is viewed as a reliable long-term investment option, with the potential for increased profitability post-modernization, although caution is advised for those seeking stable dividends [11][12].

Core Insights - United Parcel Service, Inc. (UPS) is recognized as one of the best freight stocks to invest in, despite recent revenue declines and an adjusted EPS miss [1] - The company reported a 0.8% decline in revenue in the U.S. Domestic Segment and a 2.6% drop in the International Segment, with adjusted EPS of $1.55 falling short of the $1.57 analysts expected [2] - UPS's Director, Christiana Smith Shi, purchased 500 shares valued at $44,080, signaling confidence in the company amidst mixed analyst opinions [3] - The company has an upside potential of 17.59% and is supported by 53 hedge funds holding stakes, indicating strong institutional interest [4] - Founded in 1907 and headquartered in Georgia, UPS is one of the largest global logistics and package delivery companies, offering a wide range of services [5]

Core Insights - FedEx Corporation is a global delivery empire that facilitates the overnight shipment of packages across continents, playing a crucial role in various sectors including personal gifts and essential medical supplies [1] Company Overview - FedEx operates a vast logistics network that enables rapid delivery services, highlighting its significance in the global supply chain [1] Industry Context - The delivery and logistics industry is characterized by its ability to adapt to consumer demands for speed and reliability, with companies like FedEx at the forefront of this evolution [1]