Here are Wednesday's biggest analyst calls: Nvidia, Netflix, UPS, Levi Strauss, Carvana, AMD & more
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2025
0mins
Should l Buy UPS?
Source: CNBC
Market Upgrades and Downgrades: Several firms have made significant upgrades and downgrades on various stocks, including Bernstein upgrading Nvidia and Wells Fargo upgrading Northrop Grumman, while Deutsche Bank downgraded Adobe due to concerns over AI monetization.
Sector Insights: Analysts are optimistic about companies like Coca-Cola and Novo Nordisk, citing strong growth potential, while concerns linger for AMD's competitiveness in the AI market, indicating a mixed outlook across different sectors.
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Analyst Views on UPS
Wall Street analysts forecast UPS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for UPS is 107.06 USD with a low forecast of 80.00 USD and a high forecast of 126.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
9 Buy
9 Hold
1 Sell
Moderate Buy
Current: 120.000
Low
80.00
Averages
107.06
High
126.00
Current: 120.000
Low
80.00
Averages
107.06
High
126.00
About UPS
United Parcel Service, Inc. provides a range of integrated logistics solutions for customers in more than 200 countries and territories. Its U.S. Domestic Package segment offers a range of United States domestic 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. UPS SurePost provides residential ground service for customers with non-urgent, lightweight residential shipments. Its International Package segment consists of small package operations in Europe, Indian sub-continent, Middle East and Africa, Canada and 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, 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.
- Freight Brokers and AI: Freight brokers, once seen as beneficiaries of artificial intelligence, are now facing challenges from software companies leveraging AI technology.
- Shift in Perception: The shift in perception highlights the evolving landscape of the freight industry as AI continues to advance and disrupt traditional roles.
- Impact on the Industry: This change suggests that freight brokers may need to adapt to remain competitive in an increasingly automated environment.
- Future Considerations: The situation raises questions about the long-term implications of AI on various sectors within the logistics and transportation industries.
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- Stock Decline: UPS's stock fell approximately 20% last year, and despite recent recovery, it remains about 50% lower than its 2022 highs, indicating market caution regarding its future performance.
- Business Overhaul Plan: UPS is implementing cost-cutting measures, including layoffs and facility closures, while focusing on high-margin business relationships, as part of a multi-year transformation aimed at improving operational efficiency and profitability.
- Revenue Trend Improvement: Despite a decline in U.S. business revenue, revenue per package has increased over the last three quarters, indicating early success in the company's focus on higher-margin operations, with 2026 expected to be a pivotal year for the turnaround.
- Investment Opportunity: Given the significant stock sell-off, investors still have the chance to buy UPS as business trends improve, and with the ongoing transformation, further upside is anticipated in the future.
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- Industry Trend Observation: Despite surging AI spending and major players like Meta and Alphabet pushing forward, the future of software companies remains uncertain, particularly for those reliant on single-function products, which may face greater risks of obsolescence.
- Job Market Dynamics: Recent data shows that January layoffs reached the highest level since 2009, with job openings falling to the lowest since 2020, reflecting adjustments in labor demand as companies navigate economic recovery, potentially linked to the rise of AI technologies.
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- Surge in AI Spending: While AI spending continues to rise, software companies are facing intensified competitive pressures, particularly those reliant on single-function offerings like HubSpot and Atlassian, which may experience greater market disruption, impacting their future profitability.
- Clear Industry Differentiation: Analysts categorize software companies into three groups: large software leaders like Microsoft, critical ecosystem companies like Shopify, and those with singular functions, with the latter facing higher risks in the wake of AI advancements, potentially leading to market share erosion.
- Job Market Fluctuations: Recent data shows that layoffs in January 2026 reached the highest level since 2009, and while the overall unemployment rate remains within historical averages, this trend may reflect companies adjusting their hiring strategies in light of AI investments and efficiency improvements, affecting future recruitment plans.
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- UPS Dividend Appeal: United Parcel Service (UPS) currently offers a dividend yield of 5.6%, significantly higher than the S&P 500's 1.1%, and despite a 19% rise in stock price, its 2026 revenue guidance exceeds analyst expectations by nearly $2 billion, indicating strong profitability and sustainable dividends.
- Earnings Performance Exceeds Expectations: UPS reported an adjusted earnings per share of $2.38 for Q4 2025, surpassing the $2.20 forecast, demonstrating that the company's strategy focused on high-value deliveries and margin improvement is effective, making it a relatively safe long-term investment despite global economic uncertainties.
- Verizon's Growth Potential: Verizon Communications boasts a dividend yield of 6%, with a 15% stock price increase this year, and its wireless subscriber growth has reached a six-year high, indicating that under new CEO leadership, the company is improving profitability, with projected EPS for 2026 at $4.90, exceeding market expectations.
- Safe Dividend Payments: With a payout ratio around 50%, Verizon's dividends appear very secure, and as the company shows signs of improving profitability and restoring investor confidence, it is regarded as a solid income stock to buy right now.
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