DailyIQ
|
Sector:IndustrialsAll sectors
Last updated 1 hour ago

UPS·United Parcel Service, Inc.

$.
-. (-.%)
High
$106.66
Open
$106.60
Market Cap
86.97B
52W High
$122.41
Low
$105.39
P. Close
$106.67
P/E
16.57
52W Low
$82.00
Fwd P/E
13.28
Mean Target
$112.88
Technical Score (1D)
64
BUY
News Sentiment
59
BULLISH
UPS is investing nearly $50 million to enhance its logistics network and specialized teams, specifically targeting the automotive and industrial manufacturing sectors in North America. This strategic move aims to improve supply chain resilience and precision in the face of automation and geopolitical shifts. A key component of this investment is the expansion of air freight capabilities, including the introduction of time-definite heavy air freight service to and from Mexico for the first time. This development is significant as it directly supports critical production supply chains for these key industries. Investors will be watching to see how these network enhancements translate into operational efficiency and market share gains in the coming weeks. This comes approximately 30 days after UPS's last earnings report, which saw a modest 2% stock decline, indicating a neutral market reaction to its financial performance and outlook at that time. The focus then was on analyzing forward-looking earnings estimates and operational metrics for future growth insights.
Earnings Summary
United Parcel Service (UPS) is a global logistics leader specializing in package transportation and delivery, operating through U.S. Domestic and International Package segments, alongside complementary services like freight forwarding and contract logistics. As a major player in the Industrials sector's Integrated Freight & Logistics industry, UPS navigates a dynamic market influenced by global trade, fuel costs, and technological advancements. In its most recent reported quarters, UPS demonstrated mixed performance against analyst expectations. For Q1 2026, the company reported an actual EPS of $1.07 against an estimate of $1.63, and revenue of $21.20 billion against an estimate of $21.51 billion, marking a miss on both fronts. This follows a Q4 2025 where UPS achieved an EPS of $2.38 on revenue of $24.48 billion, surpassing the estimated $2.22 EPS, though revenue estimates were not provided for that period. Prior to this, Q3 2025 saw an EPS of $1.74 against an estimate of $1.30, and Q2 2025 reported $1.55 against an estimate of $1.57, indicating a pattern of EPS beats in three of the last four reported quarters, with revenue performance being less consistently detailed against estimates. Looking at the year-over-year trajectory, the most recent Q1 2026 results show a significant deceleration in EPS growth compared to the prior year's performance, with revenue also declining. The company has a history of beating analyst EPS estimates in recent periods, with notable exceptions like the Q2 2025 miss and the significant Q1 2026 miss. Recent news indicates UPS has implemented international shipping surcharges due to rising global fuel prices and supply chain pressures, a move that could impact cross-border volumes. Analysts maintain a moderately optimistic outlook, with some highlighting an attractive dividend yield and management's targeting of 2026 for a turnaround driven by efficiency initiatives like facility consolidation and automation. Investors will be watching for the company's ability to manage rising costs through pricing strategies and the effectiveness of its efficiency initiatives in driving future profitability, particularly in light of the recent EPS miss and the ongoing competitive landscape. Key will be the company's performance in the upcoming quarters to demonstrate a return to consistent EPS growth and revenue expansion.

EPS

EstBeatMiss
$0.87$1.30$1.73$2.15$2.58Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$1.65 - -
Q1'26$1.63$1.07-34.2%
Q4'25$2.22$2.38+7.0%
Q3'25$1.30$1.74+33.9%
Q2'25$1.57$1.55-1.0%
Q1'25$1.38$1.49+7.9%

Revenue

EstBeatMiss
$20.7B$21.8B$22.8B$23.9B$25.0BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$21.9B - -
Q1'26$21.5B$21.2B-1.4%
Q4'25$24.2B$24.5B+1.0%
Q3'25 - $21.4B -
Q2'25 - $21.2B -
Q1'25 - $21.5B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
→

Market Data

UPS Stock Snapshot

UPS is currently trading at $106.36, giving United Parcel Service, Inc. a market cap of 86.97B and a P/E ratio of 16.6. Today's range spans $105.39–$106.66, with shares opening at $106.60 and moving down $0.31 (0.3%) from the prior close. DailyIQ's technical score sits at 64/100 (HOLD) with a news sentiment reading of 59/100.

Over the past year UPS has traded between $82.00 and $122.41 - the current price is +29.7% off the 52-week low and -13.1% from the high. 35 analysts cover the stock with a Hold consensus and a mean 12-month target of $112.88 (range $75.00–$135.00), implying upside of +6.1%.

Sector rotation context matters for UPS's HOLD phase (64/100, HOLD): in Industrials, large-cap names (86.97B market cap) with neutral technicals and neutral sentiment (59/100) are often in a staging area ahead of a rotation trade. The current P/E ratio stands at 16.6. Price: $106.36 (in the middle of its 52-week range in $82.00–$122.41). When sector flows resume, names that consolidated cleanly rather than correcting sharply tend to lead the next leg - and UPS's current setup fits that pattern.

Portfolio construction in Industrials often uses large-cap names like UPS as tactical swing positions during neutral phases: cheap enough to overweight, liquid enough to exit quickly, and large enough to provide meaningful sector beta. The current 64/100 (HOLD) at $106.36 (in the middle of its 52-week range) and neutral sentiment (59/100) frame the position as a catalyst play within the $82.00–$122.41 annual range rather than a directional bet.