Free Trial

The Downtrend in UPS Stock Isn’t Over Yet

UPS stock price

Key Points

  • United Parcel Service's turnaround efforts are taking hold, setting this market up to bottom and reverse course for 2025.
  • Margin improvement is among the highlights of Q3, driving solid cash flow and earnings improvement, sustaining the outlook for capital returns.
  • Analysts and institutional activity in Q3 signals a bottom is in play, but lows near $125 may be retested before a sustained rally forms. 
  • Want stock alerts on United Parcel Service? Get 5 Weeks of MarketBeat All Access for $5. Get My Stock Alerts.

The price action in United Parcel Service NYSE: UPS may have reached the bottom, but the downtrend isn’t over yet. The Q3 results affirm the outlook that growth can be sustained and earnings leverage realized, sparking a surge in the price action. Still, the subsequent selloff from a multi-year high confirms resistance at a critical level and the likelihood of lower prices for the stock this year. 

United Parcel Service Today

United Parcel Service, Inc. stock logo
UPSUPS 90-day performance
United Parcel Service
$87.54 +0.27 (+0.31%)
As of 08/29/2025 03:59 PM Eastern
This is a fair market value price provided by Polygon.io. Learn more.
52-Week Range
$84.28
$145.01
Dividend Yield
7.49%
P/E Ratio
13.03
Price Target
$112.81

Ultimately, it is good news for investors because it means a retest of the recent lows is likely; when it happens, the market may confirm the bottom and give the all-clear that it’s time to buy this transportation stock. As it is, the market bounced from the critical support only once and will likely retest it again at least once because it is far from confirming a technical reversal. 

The question is, what kind of bottom does the stock form, how many opportunities to buy at the multi-year low, and how long will it be until there are no more chances? Based on the Q3 results, it might not be long. The takeaway from the report is that turnaround efforts are taking hold, growth is back in the picture, and earnings are improving, sustaining the capital return outlook, which is robust. The company yields more than 6% with shares near $135, and the distribution can be expected to grow over time.

United Parcel Service Shows Improvement in Q3

United Parcel Service’s Q3 results show a marked improvement over the prior quarter and year. The company posted $22.2 billion in revenue, growing by 5.4% YOY and outpacing the consensus estimate on strength in all segments. Domestic strength is noteworthy, up 5.8% on a 6.5% increase in volume that shows a stronger-than-expected customer base. International grew by 3.4% on a 2.5% increase in revenue per item, and Supply Chain Services contributed with an 8% increase, showing solid demand throughout the system and globally.

United Parcel Service Dividend Payments

Dividend Yield
7.49%
Annual Dividend
$6.56
Dividend Increase Track Record
16 Years
Dividend Payout Ratio
97.62%
Next Dividend Payment
Sep. 4
UPS Dividend History

The margin news is equally good, resulting in solid earnings growth and sustained balance sheet improvement. The margin widened because of efficiency efforts, investments in technology, and repositioning, which are expected to sustain margin strength in 2025. 

The net result is that the consolidated operating margin widened by nearly 300 basis points to 8.9%, driving a 22.8% increase in the adjusted operating earnings. This leaves the adjusted EPS $0.14 or 860 basis points better than expected. The balance sheet shows the impact of divestiture and transformation costs but remains in fortress condition. Leverage is low at 1.2X equity and 3.4X cash, leaving the company in nimble operating condition and able to sustain business transformation and capital returns.

The guidance for Q4 is mixed but favors a price action bottom. The company reduced its outlook for revenue to reflect the divestiture of Coyote Logistics and a diminished outlook for the 4th quarter, falling short of the consensus by nearly 100 basis points. The outlook implies growth will persist but slow to under 2%. However, the company also improved the margin outlook by 20 basis points to 9.6%, reflecting the Q3 strength and the expected stickiness of margin improvements. 

Analysts Put a Floor on UPS Price Action

United Parcel Service Stock Forecast Today

12-Month Stock Price Forecast:
$112.81
28.87% Upside
Hold
Based on 29 Analyst Ratings
Current Price$87.54
High Forecast$150.00
Average Forecast$112.81
Low Forecast$75.00
United Parcel Service Stock Forecast Details

The consensus price target for UPS fell in 2024, but the downtrend ended in the summer. MarketBeat tracks numerous coverage initiations and positive revisions since August that have stabilized the downtrend in the consensus figure, which implies a nearly 10% upside from critical support targets. The Q3 results are sufficient to sustain the trend and support the market. 

Institutional interest also shifted over the summer. The institutions sold on balance in the year's first half but reverted to buying in Q3. The Q3 spike in institutional buying coincides with the August-to-October rally and indicates a bottom in the market, if not “the bottom” for the market. Technical support appears strong in the $130 to $135 range, but a move to the $125 level is possible. The best-case scenario is that UPS market support holds firm at the 30-day moving average, near $137.50 and above strong support targets. 

UPS stock chart

Should You Invest $1,000 in United Parcel Service Right Now?

Before you consider United Parcel Service, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and United Parcel Service wasn't on the list.

While United Parcel Service currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

7 Stocks to Ride The A.I. Megaboom Cover


We are about to experience the greatest A.I. boom in stock market history...

Thanks to a pivotal economic catalyst, specific tech stocks will skyrocket just like they did during the "dot com" boom in the 1990s.

That’s why, we’ve hand-selected 7 tiny tech disruptor stocks positioned to surge.

  1. The first pick is a tiny under-the-radar A.I. stock that's trading for just $3.00. This company already has 98 registered patents for cutting-edge voice and sound recognition technology... And has lined up major partnerships with some of the biggest names in the auto, tech, and music industry... plus many more.
  2. The second pick presents an affordable avenue to bolster EVs and AI development…. Analysts are calling this stock a “buy” right now and predict a high price target of $19.20, substantially more than its current $6 trading price.
  3. Our final and favorite pick is generating a brand-new kind of AI. It's believed this tech will be bigger than the current well-known leader in this industry… Analysts predict this innovative tech is gearing up to create a tidal wave of new wealth, fueling a $15.7 TRILLION market boom.

Right now, we’re staring down the barrel of a true once-in-a-lifetime moment. As an investment opportunity, this kind of breakthrough doesn't come along every day.

And the window to get in on the ground-floor — maximizing profit potential from this expected market surge — is closing quickly...

Simply enter your email below to get the names and tickers of the 7 small stocks with potential to make investors very, very happy.

Get This Free Report
Thomas Hughes
About The Author

Thomas Hughes

Contributing Author

Technical and Fundamental Analysis, S&P 500, Retail and Consumer Sectors, Dividends

Like this article? Share it with a colleague.

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
United Parcel Service (UPS)
4.9834 of 5 stars
$87.540.3%7.49%13.03Hold$112.81
Compare These Stocks  Add These Stocks to My Watchlist 

Featured Articles and Offers

Recent Videos

$15 Billion for Cybersecurity: The Government’s Next Big Push
Tesla’s Future Unleashed: Elon’s Robotics Move Changes Everything
Top Trades: Massive Gains and Costly Mistakes to Avoid

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines