UPS Focuses on Profitable Customers Amid Business Overhaul, Stock Up 24%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Business Restructuring: UPS has decided to reduce its reliance on Amazon and focus on more profitable customers, which has led to short-term revenue declines but is expected to enhance long-term profitability.
- Revenue Growth: In Q2 2025, revenue per piece in the U.S. market rose 5.5% despite an overall revenue decline of 0.8%, indicating that the company is achieving its profitability goals.
- Margin Improvement: The adjusted operating margin improved by 110 basis points year-over-year in Q3, suggesting that UPS's business trends are improving and investor confidence is gradually returning.
- Stock Rebound: UPS's share price has increased by 24% over the past three months, reflecting market optimism regarding its business turnaround, although the high 6% dividend yield may face adjustment risks.
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: 109.300
Low
80.00
Averages
107.06
High
126.00
Current: 109.300
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.
