UPS Stock Rises Nearly 30% Ahead of Earnings Report on January 27
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Stock Recovery: UPS shares have risen nearly 30% over the past three months, despite a 53% decline from 2022 highs, indicating gradual market recognition of its turnaround efforts.
- Revenue Growth: In Q2 2025, revenue per package in UPS's core U.S. market increased by 5.5%, followed by a further 9.8% rise in Q3, suggesting successful implementation of a high-margin business strategy.
- Transformation Challenges: UPS's proactive reduction of low-margin Amazon package handling has led to short-term revenue declines, but this move aims to optimize its business structure and enhance long-term profitability.
- High Dividend Risk: With a dividend yield of 6.1% and a trailing 12-month payout ratio exceeding 100%, there is a clear risk of a dividend cut, necessitating careful evaluation by investors.
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.
