UPS is rated a 'sell' due to risks in its revenue recovery and dividend sustainability. Amazon's entry into third-party logistics increases competition, threatening UPS's growth and profit margins. Despite cost-cutting and focusing on higher-margin services, UPS's free cash flow is insufficient to cover its $1.64 dividend, raising the possibility of a dividend cut. The company's 2026 guidance seems optimistic given industry challenges and its continued reliance on debt to fund dividends.

More News (UPS)

UPS shares jump 31% since last summer but downgraded to hold amid growth and profit concerns.

United Parcel Service (UPS) stock has surged 31% since last summer, outperforming the benchmark's 16%. However, the analyst downgraded UPS from buy to hold due to expected challenges such as slow revenue growth and pressure on profits through fiscal ...

Analyst Insights

Bearish

7 hours ago

UPS faces growth and dividend risks amid Amazon's logistics push and weak cash flow.

More News (UPS)

UPS shares jump 31% since last summer but downgraded to hold amid growth and profit concerns.

Invest & Trade with
#1 Award-Winning Investment Super App

Invest

Features

Fees

Learn

Investment Clubs (Coming Soon)

Support

iOS App Store

Google Play Store

UPS faces growth and dividend risks amid Amazon's logistics push and weak cash flow.

More News (UPS)

UPS shares jump 31% since last summer but downgraded to hold amid growth and profit concerns.

Invest & Trade with#1 Award-Winning Investment Super App

iOS App Store

Google Play Store

Invest & Trade with
#1 Award-Winning Investment Super App