Turnaround Opportunities for UPS and Hormel Foods
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 01 2026
0mins
Source: Fool
- UPS Transformation Progress: In 2025, UPS closed 93 buildings and deployed automation at 57 locations, successfully saving $3.5 billion, with 2026 expected to be an inflection point as the second half is projected to outperform the first, indicating positive results from its turnaround efforts.
- Revenue Growth Potential: Despite a year-over-year decline in revenue and earnings in 2025, UPS saw a 7.1% increase in revenue per piece in the U.S. market, suggesting that its turnaround initiatives are yielding expected outcomes, likely attracting more investor interest in the future.
- Hormel's Strong Sales: Hormel achieved organic sales growth for five consecutive quarters in 2025, with adjusted earnings expected to rise between 4% and 10% in 2026, demonstrating the company's successful transformation towards value-added products.
- High Dividend Appeal: Hormel offers a dividend yield of 5%, significantly higher than the 1.1% from the S&P 500 index, and with over 50 years of annual dividend increases, it stands out as a strong option for income investors.
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Analyst Views on UPS
Wall Street analysts forecast UPS stock price to rise
19 Analyst Rating
9 Buy
9 Hold
1 Sell
Moderate Buy
Current: 105.060
Low
80.00
Averages
107.06
High
126.00
Current: 105.060
Low
80.00
Averages
107.06
High
126.00
About UPS
United Parcel Service, Inc. is a global package delivery and logistics provider. Its U.S. Domestic Package segment offers a full spectrum of air and ground package transportation services. Its air portfolio offers time-definite, same-day, next-day, two-day and three-day delivery alternatives as well as air cargo services. Its ground network enables customers to ship using its day-definite ground service. Ground Saver provides residential ground service for customers with non-urgent, lightweight residential shipments. Its International Package segment consists of small package operations in Europe, Middle East and Africa, Canada and Latin America and Asia. It offers a selection of guaranteed day and time-definite international transportation services supported by its brokerage capabilities that facilitate cross-border clearance for international shipments. Its supply chain solutions consist of customized third-party logistics and specialized cold chain transportation solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
UPS Turnaround Outlook: Inflection Point in 2026
- Financial Restructuring Challenges: UPS has seen its stock price decline over 50% in the past two years, yet management suggests that the troubling financial results may soon come to an end, indicating a difficult turnaround process for the company.
- Customer Structure Adjustment: By cutting costs and focusing on more profitable customers, UPS has experienced a revenue decline; however, revenue per piece in the U.S. market rose 7.1% in 2025, reflecting the initial success of the company's strategic shift.
- 2026 Outlook: Management anticipates that financial results will improve in the second half of 2026, despite the first half continuing recent trends of declining revenues and pressured margins, marking a potential turning point for the company.
- Investment Opportunity: With UPS's stock down significantly, market expectations are low, suggesting that if management's projections materialize, the financial reports in Q3 and Q4 could substantially boost the stock price, making preemptive buying a potentially lucrative decision.
See More
UPS Faces Challenges in Turnaround Efforts
- Performance Decline: UPS's stock has fallen over 50% from its 2022 peak, reflecting the pressure on the company's performance during its turnaround efforts, although management anticipates improvements in the second half of 2026.
- Revenue Strategy Shift: The company has cut costs and focused on more profitable customers, leading to a revenue decline; however, the revenue per piece in the U.S. market increased by 7.1% in 2025, indicating initial success of the transformation.
- Future Outlook: Management expects revenues to begin climbing and margins to improve in the second half of 2026, although the overall performance for the year may remain flat compared to 2025, yet investor optimism could drive stock price recovery.
- Low Market Expectations: With UPS's stock significantly down, Wall Street has low expectations for its future performance, suggesting that buying now could yield substantial returns as improvements are reflected in upcoming financial reports.
See More
UPS's Turnaround Outlook Sparks Investor Interest
- Performance Decline Context: UPS's stock has fallen over 50% since its 2022 peak, and while management claims financial results are set to improve, investors must remain vigilant regarding its turnaround efforts.
- Revenue Growth Signs: In 2025, UPS's revenue per piece in the U.S. market increased by 7.1%, indicating some success in shifting towards more profitable customers, even as overall revenues continue to decline.
- 2026 Outlook: Management anticipates that the second half of 2026 will mark a turning point, with revenues expected to rebound and margins to improve, despite continued pressure in the first half of the year.
- Investor Strategy: Given UPS's significant stock decline and low market expectations, buying before the second half could yield substantial returns, particularly if the anticipated performance improvements materialize.
See More
S&P 500 Hits Record High as Oil Prices Plunge
- Strong Market Performance: The S&P 500 reached a new record high on Friday after Iran announced the Strait of Hormuz was 'completely open,' indicating a significant improvement in market sentiment, while oil prices fell over 10%, with WTI crude dropping to the low $80s, reflecting investor optimism about future economic recovery.
- Interest Rate Expectations Shift: The market is beginning to price in a 25-basis-point cut in December, indicating a reduction in investor concerns about economic slowdown, and the anticipated decline in rates is expected to further stimulate consumption and investment, driving stock market gains.
- Arm Holdings Strategic Shift: Arm recently unveiled its first in-house data center CPU, the AGI CPU, marking a significant transition from solely licensing to designing and selling its own chips, with projections of generating $25 billion in revenue by FY2031, $15 billion of which will come from these in-house chips, showcasing its ambitions in the semiconductor market.
- FedEx Spin-Off Plan: FedEx plans to spin off FedEx Freight on June 1, aiming to enhance the value of both companies through sharper strategic focus, with FedEx Freight being the largest LTL carrier in North America, and a medium-term revenue growth outlook of 4% to 6% expected to further strengthen its market competitiveness.
See More
Uber Launches New Returns Feature for Uber Eats
- Returns Feature Innovation: Uber Eats launched a new returns feature on Friday, allowing customers to request returns via their phones, with couriers picking up items for return, marking a significant innovation in the on-demand delivery industry.
- Instant Refund Mechanism: Customers can receive instant refunds when couriers pick up returned items worth at least $20, aiming to enhance customer shopping experiences and reduce stress associated with the return process.
- Market Competitive Advantage: This service applies to multiple retailers, including Best Buy, Dick's Sporting Goods, and Petco, further strengthening Uber's competitive position in the delivery market, especially in addressing the growing demand for online returns.
- Strong Financial Performance: Uber reported $4.9 billion in delivery revenue for Q4 2025, a 30% year-over-year increase, demonstrating the company's success in expanding delivery services, with the new returns feature expected to further drive revenue growth.
See More
Uber Launches Retail Return Pickup Service
- Return Service Innovation: Uber has announced a retail return pickup service that allows customers to return items purchased from retailers like Best Buy, Dick's Sporting Goods, and Petco through the Uber Eats app, enhancing user experience and addressing the pain points of online shopping returns.
- Instant Refund Mechanism: The service enables customers to receive an instant refund when the courier picks up the item, applicable to products costing at least $20, thereby streamlining the return process and improving customer satisfaction.
- Market Demand Response: A survey indicated that one-third of online return customers find printing labels and finding packaging stressful, and Uber's new feature aims to address this widespread issue, further solidifying its competitive position in the delivery market.
- Financial Performance Boost: Uber's delivery revenue reached $4.9 billion in Q4 of fiscal 2025, marking a 30% year-over-year increase, and the launch of this return service is expected to further drive revenue growth and enhance user loyalty.
See More
UPS Turnaround Outlook: Inflection Point in 2026
- Financial Restructuring Challenges: UPS has seen its stock price decline over 50% in the past two years, yet management suggests that the troubling financial results may soon come to an end, indicating a difficult turnaround process for the company.
- Customer Structure Adjustment: By cutting costs and focusing on more profitable customers, UPS has experienced a revenue decline; however, revenue per piece in the U.S. market rose 7.1% in 2025, reflecting the initial success of the company's strategic shift.
- 2026 Outlook: Management anticipates that financial results will improve in the second half of 2026, despite the first half continuing recent trends of declining revenues and pressured margins, marking a potential turning point for the company.
- Investment Opportunity: With UPS's stock down significantly, market expectations are low, suggesting that if management's projections materialize, the financial reports in Q3 and Q4 could substantially boost the stock price, making preemptive buying a potentially lucrative decision.
See More
UPS Faces Challenges in Turnaround Efforts
- Performance Decline: UPS's stock has fallen over 50% from its 2022 peak, reflecting the pressure on the company's performance during its turnaround efforts, although management anticipates improvements in the second half of 2026.
- Revenue Strategy Shift: The company has cut costs and focused on more profitable customers, leading to a revenue decline; however, the revenue per piece in the U.S. market increased by 7.1% in 2025, indicating initial success of the transformation.
- Future Outlook: Management expects revenues to begin climbing and margins to improve in the second half of 2026, although the overall performance for the year may remain flat compared to 2025, yet investor optimism could drive stock price recovery.
- Low Market Expectations: With UPS's stock significantly down, Wall Street has low expectations for its future performance, suggesting that buying now could yield substantial returns as improvements are reflected in upcoming financial reports.
See More
UPS's Turnaround Outlook Sparks Investor Interest
- Performance Decline Context: UPS's stock has fallen over 50% since its 2022 peak, and while management claims financial results are set to improve, investors must remain vigilant regarding its turnaround efforts.
- Revenue Growth Signs: In 2025, UPS's revenue per piece in the U.S. market increased by 7.1%, indicating some success in shifting towards more profitable customers, even as overall revenues continue to decline.
- 2026 Outlook: Management anticipates that the second half of 2026 will mark a turning point, with revenues expected to rebound and margins to improve, despite continued pressure in the first half of the year.
- Investor Strategy: Given UPS's significant stock decline and low market expectations, buying before the second half could yield substantial returns, particularly if the anticipated performance improvements materialize.
See More
S&P 500 Hits Record High as Oil Prices Plunge
- Strong Market Performance: The S&P 500 reached a new record high on Friday after Iran announced the Strait of Hormuz was 'completely open,' indicating a significant improvement in market sentiment, while oil prices fell over 10%, with WTI crude dropping to the low $80s, reflecting investor optimism about future economic recovery.
- Interest Rate Expectations Shift: The market is beginning to price in a 25-basis-point cut in December, indicating a reduction in investor concerns about economic slowdown, and the anticipated decline in rates is expected to further stimulate consumption and investment, driving stock market gains.
- Arm Holdings Strategic Shift: Arm recently unveiled its first in-house data center CPU, the AGI CPU, marking a significant transition from solely licensing to designing and selling its own chips, with projections of generating $25 billion in revenue by FY2031, $15 billion of which will come from these in-house chips, showcasing its ambitions in the semiconductor market.
- FedEx Spin-Off Plan: FedEx plans to spin off FedEx Freight on June 1, aiming to enhance the value of both companies through sharper strategic focus, with FedEx Freight being the largest LTL carrier in North America, and a medium-term revenue growth outlook of 4% to 6% expected to further strengthen its market competitiveness.
See More
Uber Launches New Returns Feature for Uber Eats
- Returns Feature Innovation: Uber Eats launched a new returns feature on Friday, allowing customers to request returns via their phones, with couriers picking up items for return, marking a significant innovation in the on-demand delivery industry.
- Instant Refund Mechanism: Customers can receive instant refunds when couriers pick up returned items worth at least $20, aiming to enhance customer shopping experiences and reduce stress associated with the return process.
- Market Competitive Advantage: This service applies to multiple retailers, including Best Buy, Dick's Sporting Goods, and Petco, further strengthening Uber's competitive position in the delivery market, especially in addressing the growing demand for online returns.
- Strong Financial Performance: Uber reported $4.9 billion in delivery revenue for Q4 2025, a 30% year-over-year increase, demonstrating the company's success in expanding delivery services, with the new returns feature expected to further drive revenue growth.
See More
Uber Launches Retail Return Pickup Service
- Return Service Innovation: Uber has announced a retail return pickup service that allows customers to return items purchased from retailers like Best Buy, Dick's Sporting Goods, and Petco through the Uber Eats app, enhancing user experience and addressing the pain points of online shopping returns.
- Instant Refund Mechanism: The service enables customers to receive an instant refund when the courier picks up the item, applicable to products costing at least $20, thereby streamlining the return process and improving customer satisfaction.
- Market Demand Response: A survey indicated that one-third of online return customers find printing labels and finding packaging stressful, and Uber's new feature aims to address this widespread issue, further solidifying its competitive position in the delivery market.
- Financial Performance Boost: Uber's delivery revenue reached $4.9 billion in Q4 of fiscal 2025, marking a 30% year-over-year increase, and the launch of this return service is expected to further drive revenue growth and enhance user loyalty.
See More
