UPS shares seen as undervalued with strong Q1 results and 6% dividend yield, poised for growth.

United Parcel Service (UPS) is rated a buy as its shares are undervalued by about 10%, supported by a strong 6.0% dividend yield. The company reported better-than-expected earnings and revenue in Q1, reaffirmed its full-year 2026 guidance, and anticipates margin improvement as cost pressures ease in the second half of the year. Operational gains include reduced volume from Amazon, cost-saving measures, and strong growth in healthcare and small business segments. Technically, UPS shares show a solid base and potential upside if they surpass resistance levels around $115–$120.