United Parcel Service, Inc.

United Parcel Service remains a "Buy," with shares fundamentally undervalued and supported by robust free cash flow and a 6.4% dividend yield. Q2 results exceeded expectations, with revenue up 7.5% and all segments contributing to a double beat and raised FY 2026 guidance. Valuation remains attractive, with a forward P/E of 15.7x and an intrinsic value target near $121, despite technicals showing mixed momentum.

United Parcel Service is rated Buy, supported by a leaner domestic network and a pivot to higher-margin SMB and healthcare segments. After shedding low-quality Amazon volume, UPS has restructured its U.S. operations, improving efficiency, automation, and profitability. International segment recovery, especially from Asia and easing network disruptions, is expected to drive further EPS growth.

The latest trading day saw United Parcel Service (UPS) settling at $102.46, representing a +2.17% change from its previous close.

UPS carries a yield above 6%, but the math behind that number tells a very different story than a healthy payout raise. Before adding it to an income portfolio, understand what actually pushed the yield this high.