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NYSE:UPS

United Parcel Services (UPS)

108.83
+0.73 (0.68%)
as of Jun 15, 2026, 8:00:00 pm Market Open.
169 watching
0
Investor Insights
star iconJun 14, 2026, 12:00 am

This summary was created by AI, based on 7 opinions in the last 12 months.

United Parcel Service (UPS) is currently facing a challenging environment marked by increased competition and rising operational costs, including higher wages and energy prices. While some experts like it due to its attractive 6-7% dividend yield and potential for earnings growth, others express concern about the sustainability of this dividend amidst a contracting global trade landscape. The company is in a transition phase focused on automation and improving efficiency, which presents a potentially rewarding risk/reward scenario. However, some analysts warn of a possible value trap, given the history of struggles and the risk that the dividend may be threatened if business conditions do not improve. Despite some bullish sentiment on growth prospects and expansion plans, a cautious stance is advised as execution issues persist.

consensus icon
Consensus
Cautious
valuation icon
Valuation
Undervalued
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Similar
FDX
BUY
UPS has recently seen a nice turnaround. Fuel costs have moderate to help the entire transports sector in recent weeks.
BUY
They report tomorrow. E-commerce is alive and well, so these shares deserve better.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Apr 12/22, Down 5.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with UPS has triggered its stop at $177. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 3%, when combined with the previous top pick recommendation.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly As UPS continues to provide strong results and is priced attractively, we reiterate it as a TOP PICK. Recently released earnings beat expectations by 15% and support a stellar ROE over 95%. It pays a great dividend, that has been growing for 14 consecutive years, backed by a payout ratio under 45% of cash flow. Cash reserves continue to grow, while they buy back shares and retire debt. We continue to recommend a stop at $177, looking to achieve $236 -- upside potential over 23%. Yield 3.18% (Analysts’ price target is $236.31)
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O’Reilly As eCommerce trade has benefitted during the pandemic, we reiterate this major company that delivers the goods. It is a defensive holding that continues to beat analyst expectations and deliver a great ROE. It pays a good dividend backed by a payout ratio under 45% of cash flow. We also like that it is growing cash reserves, while paying down debt and buying back shares. We continue to recommend a stop at $177, looking to achieve $238 - over 15% upside. Yield 1.99%
BUY
UPS has done much better than FDX with 14% growth, better technicals, better growth rate, better chart.
BUY
UPS vs. FDX FDX chart's long-term 200-day MA is starting to flatline and fall slightly, and the share price is still beneath it. Technically, FDX doesn't look great, challenged with severe labour market constraints and rising wages, struggling to improve ground and express margins. UPS 5-year earnings growth is 12% a year, whereas FDX is around 6%. UPS has stronger technicals, with with 200-day MA moving higher and the share price above that. He'd choose UPS.
BUY
Thoughts on FedEx Today, there was a nasty downgrade of UPS, a stock and CEO he likes. He believes UPS and FedEx will do well this holiday season.
BUY
UPS vs. FDX UPS has done a lot better. FDX has grown 6% a year for 5 years, UPS 12% and he expects that momentum to continue. UPS is the better name until FDX can turn around. FDX's long-term 200-day MA is starting to dip, flatten out, and probably roll over. Trend lines and technicals don't look positive. Labour constraints and rising wages. Struggling to improve margins.
BUY
They delivered a strong quarter with great numbers, pushing shares from $180 to $210. It once hit $220, but the current level is good. He believes in the CEO and feels this will catch fire into the holiday season.
DON'T BUY
UPS vs. FDX Larger than FDX. Relies more on ground. FDX has a bigger stake in air delivery business. FDX bought into Europe and so is more international. UPS is more domestic. FDX valuation is inexpensive, but it needs a catalyst, and he feels those are right around the corner.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Sep 22/20, Up 31.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with UPS continues to progress well. We recommend trailing up the stop (from $145) to $177. If triggered, this would result in a net combined investment return of 9%.
WEAK BUY

About FedEx They're in a fantastic position, but maybe they can't maintain their momentum. When UPS spoke recently, their shares got crushed. He thinks they can achieve rich profit margins and growth. They have the edge of UPS, though UPS' price is better. At the next UPS report, he may buy more.

DON'T BUY

Stay away from FedEx and UPS. Look at the rails instead, because they really don't face competition.

BUY

UPS has done a great job showing capacity discipline and has pricing power. We're not late cycle, otherwise he would stay away from transports like UPS and FedEx. UPS Q1 numbers saw shares spike and has since given some back. Now is a buying opportunity.

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