United Parcel Service, Inc. (UPS), headquartered in Atlanta, Georgia, offers a range of services including transportation and delivery, distribution, contract logistics, ocean freight, air freight, customs brokerage, and insurance. Valued at $78.9 billion by market cap, UPS is a leading provider of global supply chain management solutions and delivers packages each business day for 1.6 million shipping customers to 10.2 million delivery customers in over 200 countries and territories.
Shares of this logistics giant have underperformed the broader market considerably over the past year. UPS has declined 27.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 14.1%. In 2025, UPS stock is down 24.6%, while SPX is up 16.4% on a YTD basis.
Narrowing the focus, UPS has also lagged behind the Pacer Industrials and Logistics ETF (SHPP). The exchange-traded fund has gained about 3.1% over the past year. Moreover, the ETF’s 9.2% gains on a YTD basis outshine the stock’s double-digit losses over the same time frame.
On Oct. 28, UPS shares closed up by 8% after reporting its Q3 results. Its adjusted EPS of $1.74 beat Wall Street expectations of $1.31. The company’s revenue was $21.4 billion, topping Wall Street forecasts of $20.8 billion.
For the current fiscal year, ending in December, analysts expect UPS’ EPS to decline 10.9% to $6.88 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 31 analysts covering UPS stock, the consensus is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, one “Moderate Buy,” 14 “Holds,” one “Moderate Sell,” and two “Strong Sells.”
This configuration is less bullish than two months ago, with 14 analysts suggesting a “Strong Buy.”
On Oct. 29, Truist Financial Corporation (TFC) kept a “Buy” rating on UPS and raised the price target to $120, implying a potential upside of 26.3% from current levels.
The mean price target of $104.10 represents a 9.5% premium to UPS’ current price levels. The Street-high price target of $122 suggests an upside potential of 28.4%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
