United Parcel Service: Why I Think Consolidation Is Next

United Parcel Service surged 31% since last summer, outperforming the benchmark’s 16%, excluding dividends.

I am downgrading UPS from buy to hold due to anticipated headwinds, including muted revenue growth and bottom-line pressure into FY2026. Recent quarters show decelerating revenue declines, but both top and bottom lines still fell, raising caution.

UPS remains undervalued with an appealing dividend yield, yet its leveraged capital structure and payout ratio pose risks.

I have been bullish on United Parcel Service (UPS) since last summer. And it turned out to be the right call. Now, the industrials company has surged by 31% since my previous coverage. And has