NYSE: UPS
United Parcel Service
Market Cap
$74B
Today's Change
(-0.67%) $0.59
Current Price
$87.27
Price as of August 28, 2025 at 8:00 PM ET
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UPS is undergoing a major turnaround.
Shares of global logistics giant UPS (UPS 0.01%) have plunged more than 30% over the past year. This sharp sell-off has pushed its dividend yield up to around 7.5%, far surpassing the S&P 500 index's 1.2% yield.
Here's a quick look at whether UPS is an attractive investment opportunity right now.
Image source: Getty Images.
UPS is battling a barrage of issues. The business logistics company is facing a challenging economic environment due to rapidly changing trade policies. It's also scaling back its relationship with top customer Amazon to focus on more lucrative lines of business.
These challenges have hit its financials. UPS' revenue dropped 3% in the second quarter of 2025, while earnings per share fell 13%.
It could be a while before UPS' financial results start improving. The company aims to cut the volume of Amazon packages it delivers by more than half by the second half of next year. That will continue to drag down its revenue. However, the company is aligning the volume reduction with cost savings initiatives that should reduce its annualized costs by $3.5 billion by the end of this year.
UPS is also working to ramp up volume growth from more profitable areas, such as healthcare logistics. The company is accelerating this shift by acquiring leading North American healthcare supply chain manager Andlauer Healthcare Group, as well as healthcare cold-chain logistics providers Frigo-Trans and BPL. These investments should help support faster growth from UPS Healthcare in the future.
UPS is in the midst of a major turnaround. Its strategic shift away from less profitable Amazon deliveries to focus on more profitable and higher-growth areas represents both risk and opportunity. If UPS executes its plan successfully, its stock price could increase meaningfully. If not, further declines in stock price or a possible dividend cut may follow. Given the risks, investors might want to watch UPS for now and wait for clear signs of a financial improvement before buying the stock, especially if earning dividend income is your primary aim.
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