United Parcel Service trades near its analyst price target with strong earnings momentum (3 beats in 4 quarters, averaging 11.5% upside surprise), but elevated debt and a negative risk/reward ratio signal limited near-term appreciation potential.
Thesis pillars
- Leverage Headwind↓Deteriorating
- Earnings Beat Consistency↓Deteriorating
- Price Momentum Strength↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
United Parcel Service, Inc. (UPS) Stock Analysis
Range Bound setup
Industrials · Integrated Freight & Logistics
Wait for pullback to $107.74. Recent C-suite change — blocks BUY_NOW at $115.60. Engine's entry $107.74 (50-day MA) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.8): -1.0.
UPS delivers packages globally through U.S. Domestic Package, International Package, and Supply Chain Solutions segments, serving over 200 countries and territories. In 2025, the company averaged 20.8 million packages per day across 5.2 billion total packages, generating $88.7... Read more
Wait for pullback to $107.74. Recent C-suite change — blocks BUY_NOW at $115.60. Engine's entry $107.74 (50-day MA) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.8): -1.0. Chart setup: RSI 60 mid-range, Bollinger mid-band. Earnings in 1 day. Wait until post-earnings. Score 4.9/10, high confidence.
Passes 5/8 gates (positive momentum, clean insider activity, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 1d<=7d. Suitability: moderate.
About United Parcel Service, Inc.
About United Parcel Service, Inc.
UPS generated $88.7 billion in total revenue during 2025, averaging 20.8 million packages per day across more than 200 countries and territories through two package segments—U.S. Domestic Package and International Package—plus a Supply Chain Solutions division. The company employs approximately 460,000 people; nearly 80% of U.S. employees are unionized, primarily under the International Brotherhood of Teamsters.
Revenue flows through a single integrated air-and-ground network handling every package service type—air, ground, domestic, international, commercial, and residential—from a common pickup infrastructure. Amazon.com, Inc. represented approximately 10.6% of consolidated revenues in 2025, though UPS publicly committed to reducing that customer's volume by more than 50% by June 2026 from 2024 levels, requiring concurrent reductions in facilities, vehicles, aircraft, and headcount. SMB penetration exceeded 30% of total U.S. volume in 2025. The healthcare portfolio—expanded through the January 2025 acquisition of Frigo-Trans and the November 2025 acquisition of Andlauer Healthcare Group—generated more than $11 billion in revenue. Fuel costs represent a significant operating input; the company's pricing strategies include fuel surcharges and the company has historically utilized hedging, though if surcharges cannot be maintained, higher fuel costs may weigh on operating results.
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UPS operates under several collective bargaining agreements with near-term amendable dates. The Teamsters national master agreement covering most U.S. hourly workers does not expire until July 31, 2028, providing near-term labor cost certainty. However, the Independent Pilots Association contract became amendable September 1, 2025, and the Teamsters Local 2727 agreement covering approximately 2,000 airline mechanics becomes amendable November 1, 2026. The 10-K notes that past strikes caused customers to permanently redirect volume, and labor cost terms also affect competitive pricing flexibility.
See also: Industrials · Integrated Freight & Logistics
From United Parcel Service, Inc.'s most recent 10-K filing, extracted June 16, 2026.
Recent developments
updated 2026-07-27Recent Developments — United Parcel Service, Inc.
Latest news
- NEWS UPS Gears Up to Report Q2 Earnings: What's in Store for the Stock? - The Globe and Mail — The Globe and Mail neutral
- NEWS United Parcel Service (UPS) Earnings Expected to Grow: Should You Buy? - Yahoo Finance — Yahoo Finance positive
- NEWS Lobbying Update: $1,500,000 of UPS (UNITED PARCEL SERVICE) lobbying was just disclosed - Quiver Quantitative — Quiver Quantitative neutral
- NEWS UPS (UPS) Stock Looks Reasonable As Shares Stay Down 28% - simplywall.st — simplywall.st negative
- NEWS Is Trending Stock United Parcel Service, Inc. (UPS) a Buy Now? - Yahoo Finance — Yahoo Finance neutral
Generated 2026-07-27T13:02:50Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWCustomerAmazon.com, Inc.11%10-K Item 1: 'one customer, Amazon.com, Inc. and its affiliates, represented approximately 10.6% of our consolidated revenues'
Material Events(8-K, last 90d)
- 2026-05-13Item 5.02LOWBoard member Kevin M. Warsh resigned May 13, 2026 upon Senate confirmation as Chairman of the Federal Reserve Board of Governors. No disagreement with company on operations, policies, or practices cited. No successor named for board seat.SEC filing →
- 2026-05-11Item 5.02LOWShareowners approved the United Parcel Service, Inc. 2026 Omnibus Incentive Compensation Plan at the May 7, 2026 Annual Meeting. Stock and cash-based incentive plan covering employees, directors, consultants, agents, and others rendering valuable services.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Revenue shrinking — -1.6% YoY. Growth thesis broken unless recovery story develops.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Wait for pullback to $107.74. Recent C-suite change — blocks BUY_NOW at $115.60. Engine's entry $107.74 (50-day MA) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.8): -1.0. Chart setup: RSI 60 mid-range, Bollinger mid-band. Earnings in 1 day. Wait until post-earnings. Target $116.05 (+0.4%), stop $102.85 (−12.4%), A.R:R -1.3:1. Score 4.9/10, high confidence.
Take-profit target: $116.05 (-9.8% upside). Target $116.05 (+0.4%), stop $102.85 (−12.4%), A.R:R -1.3:1. Stop-loss: $102.85.
Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.8): -1.0.
United Parcel Service, Inc. trades at a P/E of 18.6 (forward 14.3). TrendMatrix value score: 6.4/10. Verdict: Buy (Wait for Entry).
33 analysts cover UPS with a consensus score of 3.6/5. Average price target: $115.
What does United Parcel Service, Inc. do?UPS delivers packages globally through U.S. Domestic Package, International Package, and Supply Chain Solutions...
UPS delivers packages globally through U.S. Domestic Package, International Package, and Supply Chain Solutions segments, serving over 200 countries and territories. In 2025, the company averaged 20.8 million packages per day across 5.2 billion total packages, generating $88.7 billion in revenue.