Stock of the Day

December 23, 2025

United Parcel Service (UPS)

$97.87
+$2.09 (+2.2%)
Market Cap: $81.49B

About United Parcel Service

United Parcel Service, Inc., a package delivery company, provides transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery of express letters, documents, small packages, and palletized freight through air and ground services in the United States. The International Package segment provides guaranteed day and time-definite international shipping services comprising guaranteed time-definite express options in Europe, Asia, the Indian sub-continent, the Middle East, Africa, Canada, and Latin America. The company also offers international air and ocean freight forwarding, post-sales, and mail and consulting services. In addition, it provides truckload and customs brokerage services; supply chain solutions to the healthcare and life sciences industries; fulfillment and transportation management services; and integrated supply chain and shipment insurance solutions. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.

United Parcel Service Bull Case

Here are some ways that investors could benefit from investing in United Parcel Service, Inc.:

  • United Parcel Service, Inc. offers a substantial income stream with a dividend yield of 6.88%, which is significantly higher than the average for large-cap industrial stocks, providing a strong cash flow component for income-focused investors.
  • The company demonstrated strong operational performance in its most recent quarter, reporting earnings per share of $1.76, which beat analyst consensus estimates of $1.65 by $0.11, indicating better-than-expected profitability and cost management.
  • United Parcel Service, Inc. is currently trading at $95.66, which is well below the average 12-month price objective of $115.87 set by twenty-six analysts, suggesting significant potential for price appreciation if the stock reverts to its fair value.
  • Recent institutional activity shows growing confidence, with major funds such as Bank of America Corp DE and First Trust Advisors LP significantly increasing their stakes in the first quarter, reflecting a strategic accumulation of shares by professional investors.
  • The company maintains a solid balance sheet with a quick ratio of 1.18 and a current ratio of 1.18, indicating sufficient liquidity to cover short-term obligations and operate efficiently despite the competitive logistics landscape.

United Parcel Service Bear Case

Investors should be bearish about investing in United Parcel Service, Inc. for these reasons:

  • There is a significant risk of dividend reduction, as the company's dividend payout ratio stands at 121.93%, meaning it is paying out more in dividends than it is earning in profits, which is unsustainable without external financing or earnings growth.
  • The stock is trading below its 50-day moving average of $100.15 and its 200-day moving average of $103.60, indicating a persistent downward trend and weak technical momentum that may continue to pressure the share price.
  • Analyst sentiment is mixed with a consensus rating of "Hold," and recent actions include Citigroup lowering its price target from $132.00 to $122.00 and Wall Street Zen downgrading the stock from "buy" to "hold," reflecting caution about future growth prospects.
  • United Parcel Service, Inc. carries a high debt-to-equity ratio of 1.58, which increases financial leverage and interest expense obligations, potentially limiting the company's flexibility to invest in new technologies or weather economic downturns.
  • The company faces operational headwinds, including a potential Teamsters union strike and a strategic pivot away from parcel volume toward premium services, which may disrupt logistics networks and create uncertainty in revenue stability.

3 Dividend Growth Stocks Analysts Are Upgrading for 2026

Written By Thomas Hughes on 12/21/2025

Golden egg labeled dividends rests in a nest, symbolizing reliable dividend income.

A single analyst's rating and price target, the consensus rating and price target, for that matter, have little value to investors without the proper context. The context is the sentiment strength and trend, which for stocks like PepsiCo (NASDAQ: PEP), AbbVie (NYSE: ABBV), and United Parcel Service (NYSE: UPS), is strong and bullish.

The sentiment strength is reflected in the number of analysts covering and the level of recent activity; the trend is the direction of revisions, either higher or lower, and in whether they are leading the market with an increasing or declining consensus price target. This article examines the sentiment trends for the aforementioned stocks and their (bullish) implications for investors in 2026. 

PepsiCo Analysts Highlight a Deep-Value/High-Yield Opportunity

PepsiCo, like other consumer staples stocks, has struggled in recent years. The impacts of recalls, compounded by macroeconomic headwinds and consumer shifts, resulted in tepid growth and lackluster stock performance, but those days are behind it. The market has priced in the worst; improvements are taking hold, and analysts' sentiment trends shifted back into an accumulative posture late in 2025. 

MarketBeat tracks 15 Q4 revisions as of mid-December, including numerous price target increases and several upgrades. The consensus rating is a Hold, but the bias is bullish, with coverage up year-over-year, upgrades in the mix, and eight of the 22 total ratings pegged at Buy. The consensus price target, up from its mid-year low, forecasts a 5% upside from the critical resistance point. Regarding the value, PepsiCo’s P/E has run closer to 25x earnings on average, suggesting a significantly larger upside is possible. Long-term forecasts put PEP stock at approximately 15x its 2030 earnings, implying as much as 50% upside. 

The analysts' shift highlights the value and yield opportunities, with PepsiCo trading near the low end of its historic P/E range and the dividend yield at 3.75%, near the high end of its range. Technically, the stock price retreated to a long-term uptrend line in 2025, triggering a trend-following signal indicating steadily increasing price action in 2026. 

PepsiCo stock chart shows shares holding long-term uptrend support with improving momentum indicators and steady trading volume.

AbbVie Uptrend Is Healthy and Intact

AbbVie’s analysts' activity reveals that its Q4 price pullback is setting up a buying opportunity. MarketBeat tracked more than a dozen revisions from among 25 analysts, including a few downgrades, but the upgrades and price target increases offset them, keeping the uptrend intact. The two downgrades are to Hold and are accompanied by consensus-affirming price targets; the remainder of the activity is reaffirmed bullish ratings and price targets, price target increases, and two upgrades to Buy. 

The takeaway is that ABBV’s coverage is strong and steady, and sentiment is firm, with a rising price target, despite some mixed sentiment. Consensus forecasts a 10% upside, sufficient for a fresh all-time high, and the business trend suggests it will continue to move higher. 

AbbVie’s driving factor is its move away from Humira. Once dependent on it for revenue, AbbVie now has a solid portfolio of fresh blockbusters, a well-diversified product portfolio, and a healthy pipeline to ensure future results. The dividend yields an annualized 3.08% in December and is of Dividend King quality due to its healthy balance sheet and history with Abbott Laboratories.

AbbVie stock chart shows recent pullback within an uptrend as analysts raise price targets, with shares holding above key moving averages.

United Parcel Service: High Yield With Limited Downside

United Parcel Service stock is not without risks, but analysts' sentiment trends limit the downside. MarketBeat data reveals eight revisions from 30 analysts following its Q3 release, providing ample coverage and reasonable conviction in the sentiment shift.

All affirm the consensus target, forecasting a 10% upside from critical support, with six price targets increased and one upgrade. The consensus is Hold, but the bias is now bullish, and the price target trend is leading to an above-consensus price point. A move to $110 is sufficient to trigger a technical reversal in this market. 

The price action is favorable for this 6.5% yielding stock. The market hit a bottom in Q4 and rebounded, regaining support at the cluster of moving averages. This is a critical level that reveals buying among near-term and short-term traders and long-term investors, suggesting that market forces are synchronizing. In this scenario, UPS stock could confirm its reversal within weeks and then continue higher in 2026.

UPS stock chart shows shares stabilizing near clustered moving averages after a sell-off, signaling potential technical support.

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