UPS Shows Early Signs of Turnaround with 9.8% Revenue Growth per Package
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17h ago
0mins
Source: Yahoo Finance
- Revenue Growth Trend: UPS reported a 5.5% increase in revenue per package in Q2 2025, followed by a 9.8% rise in Q3, indicating early success in its turnaround efforts, which is likely to drive future stock price increases.
- Strategic Adjustment: By proactively reducing the volume of low-margin Amazon packages, UPS is focusing on higher-margin businesses, which, while causing short-term revenue declines, is expected to enhance overall profitability and market competitiveness in the long run.
- Stock Price Recovery: Despite a 53% decline in stock price since 2022, UPS has seen a nearly 30% increase over the past three months, reflecting a gradual market recognition of its turnaround strategy and a restoration of investor confidence.
- High Dividend Risk: With a dividend yield of 6.1% and a payout ratio exceeding 100% over the past 12 months, there is a clear risk of a dividend cut, prompting investors to carefully assess the balance between investment risk and potential returns.
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 103.40 USD with a low forecast of 75.00 USD and a high forecast of 122.00 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.
20 Analyst Rating
9 Buy
8 Hold
3 Sell
Moderate Buy
Current: 108.620
Low
75.00
Averages
103.40
High
122.00
Current: 108.620
Low
75.00
Averages
103.40
High
122.00
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.
