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UPS Stock: Turnaround Signal Flashing?
8 Jun
Summary
- UPS stock is up 30% from its Oct. 2025 lows.
- Second-quarter earnings are not expected to be strong.
- The company anticipates revenue growth in the second half of 2026.
United Parcel Service's stock has recovered 30% from its October 2025 lows, sparking belief in its turnaround plan. Investors considering this opportunity should note that second-quarter earnings, expected in July 2026, are not projected to be strong.
This period is identified as a crucial inflection point, with UPS forecasting a shift towards financial improvement in the second half of 2026. The company has indicated that the first half of 2026 would be weak, with a stronger performance anticipated later in the year.
While the full year is expected to be relatively flat compared to 2025, key metrics like revenue per piece in the U.S. business are showing steady increases. Management remains confident in the turnaround strategy, with expectations for revenue growth and margin expansion in the latter half of 2026.
More aggressive investors might find this a suitable time to buy, as the business upturn is predicted to materialize soon. Acting before the second-quarter earnings release could position investors advantageously as Wall Street potentially recognizes this change in direction.
