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.

UPS appears to be a mature, profitable business with strong margins, but with noticeable pressure on growth quality and the balance sheet. P/E and P/S are below the industry median, which supports the idea of moderate undervaluation; however, P/B is significantly above the industry, which usually means the market is already pricing in a high cost of capital and franchise durability. P/FCF is only slightly below the median, so in terms of free cash flow the room for overvaluation/undervaluation appears limited. Return on capital is very strong: ROE, ROA, ROI, and return on tangible equity are noticeably above the industry, confirming the efficiency of the business model. At the same time, the trend in these metrics has generally deteriorated in recent periods, especially ROA and ROI, while operating and net margins have also gradually declined. This is an important signal: current profitability is good, but the trend is not accelerating, so a higher multiple would require more convincing growth. Leverage looks elevated: debt/equity is significantly above the industry, long-term debt is large, and the current ratio is weaker than the median, while the quick ratio is effectively zero, indicating limited short-term liquidity. On the other hand, cash balances and equity remain substantial, and revenue and gross profit remain large in scale, which mitigates credit risk. The dividend yield of around 1.7% looks stable, but not high enough on its own to offset weak earnings and liquidity dynamics. In absolute terms, net income and operating income for the latest reporting period declined compared with stronger previous quarters, reinforcing caution in the assessment. Overall, the fundamentals support UPS as a high-quality company with sustainable returns on capital, but weak earnings momentum, a high valuation on book value, and elevated debt limit the re-rating potential. Therefore, a moderate conservative downward adjustment to the forecast is appropriate rather than an aggressive change in valuation.

United Parcel Service, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

UPS remains a high-quality business with strong profitability, but weaker earnings momentum, liquidity, and debt metrics, which limits re-rating potential.

Key Points
Verizon, UPS, and General Mills are top dividend stocks that offer exceptional yields.
Verizon's business is in solid shape, as it continues to generate single-digit growth.
UPS and General Mills are in the midst of restructuring efforts that have impacted their recent financial results.
You need money to make money. But if you focus on high-yielding dividend stocks, you don't need as much to generate a lot of recurring cash flow. While some high-yielding stocks can be risky, others are safer than they look.
Three dividend stocks with payouts exceeding 5% that can be excellent options for income-seeking investors today are Verizon Communications (NYSE: VZ), United Parcel Service (NYSE: UPS), and General Mills (NYSE: GIS). Here's how by investing $6,000 into each one of these stocks, investors could generate $1,100 in dividend income, and why doing so may not be as risky as it might appear to be at first glance.
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Verizon Communications
At 6%, Verizon offers investors a generous yield at a time when payouts are incredibly low due to rising stock valuations. The S&P 500, for example, yields just 1.1%. That means, with Verizon, investors are getting more than five times the dividend income as with a typical stock in the broad index.
It's a great deal for income investors, especially since Verizon's business is doing just fine. It may not be a growth machine, but it's still doing well and generating single-digit growth, the kind investors might expect from a telecom company. Margins remain good, and Verizon's payout ratio is manageable at around 70% -- there's no cause for alarm regarding its dividend.
Investing $6,000 into the stock at such a high yield would produce around $360 per year in dividends. And with it trading at less than 10 times its estimated future earnings, based on analyst projections, it's still a fairly cheap buy right now.
United Parcel Service
United Parcel Service (UPS) is another high-yielding stock that many investors may be overly worried about. At 5.8%, its yield is nearly as high as Verizon's.
Investors may be spooked that its payout ratio is over 100%. But that doesn't always tell the whole story. UPS reported earnings today, and while net income was down more than 50% in the period ending June 30, the company also incurred restructuring expenses as it looks to improve its operations and efficiency. Its adjusted net income actually rose by 14%.
CEO Carol Tomé says the business "launched a major transformation" but that it's now "through those bumps" and on a stronger path forward. The company beat expectations for the most recent quarter and also raised its outlook for the year.
Another $6,000 invested in the transportation stock could generate roughly $350 in annual dividend income. Combined with Verizon, that would total about $710.
General Mills
The highest-yielding stock on this list belongs to General Mills, the iconic food company. At 6.7%, a $6,000 investment in the stock would produce approximately $400 in annual dividends. Combined with the other investments, that would bring the total to about $1,110.
General Mills posted its year-end results at the start of July, showing minor but stable 1% growth in the last three months of its fiscal year (which ended May 31). It posted a loss for the year overall, as it is also in the midst of restructuring efforts, divesting certain businesses to focus on higher-growth opportunities. By fiscal 2030, General Mills is aiming to achieve $3 billion in cumulative cost savings through its transformation initiative.
The company has paid dividends consistently to its shareholders for 127 years, without interruption. While it faces challenges, its free cash flow remains strong, totaling $1.6 billion over the past fiscal year -- more than the $1.3 billion it paid in dividends.
General Mills stock is down 19% this year, but with strong brands in its portfolio, a focus on cost reduction, and strong free cash flow, its dividend doesn't look to be in any imminent danger. With the stock also trading at just 12 times its estimated future earnings, it could be a good value stock to buy today.
Should you buy stock in Verizon Communications right now?
Before you buy stock in Verizon Communications, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Verizon Communications wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends United Parcel Service. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Want Over $1,100 in Annual Dividends? Invest $6,000 in These 3 High-Yielding Stocks

Key Points
UPS beat earnings expectations and raised full-year guidance.
Future success depends on growth in SMB and healthcare and on network modernization.
UPS (NYSE: UPS) stock declined 6.8% by 2:30 p.m. today as the company digested its second-quarter earnings report. The numbers themselves were fine, and management raised its full-year headline guidance. Still, the market obviously has concerns about the company's second half and its strategic direction.
UPS exceeds expectations and raises guidance
This quarter marks an inflection point in UPS' plans as the company has now completed the so-called "glidedown" of low or even unprofitable Amazon.com deliveries as part of its strategic restructuring. The plan is to engineer a shift toward repurposing its network for higher-margin deliveries, with a deliberate focus on growth markets such as small and medium-sized businesses (SMB) and healthcare, while investing in modernizing its network through technology to improve return on assets.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The good news is the second quarter earnings came in ahead of expectations and management raised its full-year guidance:
Full-year revenue guidance raised to $91.2 billion from a previous estimate of $89.7 billion
Full-year non-GAAP adjusted operating profit guidance of $8.65 billion compared to the implied guidance of $8.61 previously.
This looks like a good result, but there are some tangible concerns in the details of management's guidance.
What the market is worrying about with UPS
First, the implied adjusted operating margin above is 9.48%, compared to the company's previous guidance of 9.6%. Second, management noted that the increase in full-year guidance was based on its "strong first half results." Third, management's guidance is underwhelming in its key U.S. Domestic segment. Within the segment, CFO Brian Dykes is calling for average daily volume to decline by a mid-single-digit percentage, with a third-quarter operating margin of just 7% before bouncing back in the fourth quarter to 8.8% in the second half of 2026.
Clearly, a lot is resting on UPS's fourth-quarter peak season. Still, if the company can continue to win SMB and healthcare clients while moving toward higher revenue per package and delivering network efficiencies through automation, it could hit its targets after all.
Should you buy stock in United Parcel Service right now?
Before you buy stock in United Parcel Service, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and United Parcel Service wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
Now, it’s worth noting Stock Advisor’s total average return is 886% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 28, 2026.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and United Parcel Service. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's Why UPS Stock Crashed Today

United Parcel Service, Inc. (UPS) reported encouraging second-quarter 2026 results wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.
Quarterly adjusted earnings of $1.76 per share increased 13.5% year over year. The figure beat the Zacks Consensus Estimate of $1.65 by 6.7%.
Revenues rose 7.6% to $22.83 billion and surpassed the consensus estimate of $21.75 billion by 5%. Growth across all three segments supported the top line, while International revenue per piece climbed 18.9%.
United Parcel Service, Inc. Price, Consensus and EPS Surprise
Apart from the better-than-expected results, UPS has also raised its 2026 guidance. Management raised its full-year consolidated revenue outlook to approximately $91.2 billion from the prior view of $89.7 billion. UPS also lifted its adjusted operating profit target to approximately $8.65 billion and adjusted earnings guidance to approximately $7.22 per share.
UPS' Domestic Revenues Rise on Strong Pricing
U.S. Domestic Package revenues increased 6% year over year to $14.93 billion, driven by a 9.3% improvement in revenue per piece. Average daily package volume declined to 16 million from 16.6 million a year earlier, indicating that pricing more than offset lower shipment activity.
Adjusted operating profit advanced 21% year over year to $1.19 billion. The adjusted operating margin expanded 100 basis points to 8%, even as adjusted cost per piece increased 8% to $13.09. The margin improvement reflects progress from UPS’ network reconfiguration and efficiency initiatives.
United Parcel Service’s International Sales Jump
International Package revenues increased 12.5% year over year to $5.04 billion. The segment delivered the strongest revenue growth among UPS’ operating businesses, aided by the sharp increase in revenue per piece.
Adjusted operating profit declined 8.7% year over year to $623 million. The adjusted operating margin contracted to 12.4% from 15.2% in the prior-year quarter, showing that higher revenue did not translate into operating profit growth as segment expenses increased.
UPS Supply Chain Business Delivers Profit Growth
Supply Chain Solutions revenues rose 7.8% year over year to $2.86 billion. The improvement was primarily driven by growth in forwarding and logistics operations, including the healthcare business.
Adjusted operating profit increased 37.3% year over year to $291 million. The adjusted operating margin expanded 220 basis points to 10.2%, reflecting stronger operating leverage and making Supply Chain Solutions the company’s most improved segment on a profitability basis.
United Parcel Service Expands Adjusted Margin
Consolidated adjusted operating profit rose 12% year over year to $2.10 billion. The adjusted operating margin increased to 9.2% from 8.8%, supported by profit growth in the U.S. Domestic Package and Supply Chain Solutions businesses.
On a GAAP basis, operating profit fell to $930 million from $1.82 billion, while diluted earnings declined to 71 cents per share from $1.51. Results included $1.17 billion of pretax transformation strategy costs, primarily related to employee separation expenses associated with the Driver Choice Program.
UPS Network Changes Produce Cost Benefits
UPS generated approximately $1.2 billion of benefits from its network reconfiguration and Efficiency Reimagined initiatives during the first six months of 2026. Management expects these programs to deliver approximately $3 billion of benefits for the full year.
The company completed its planned Amazon volume reduction and related network changes during the period. UPS has reduced its operational workforce and closed daily operations at certain facilities as it aligns network capacity with its changing shipment mix. The broader initiatives are expected to conclude by 2027.
United Parcel Service’s Free Cash Flow More Than Doubles
Cash provided by operating activities increased to $3.08 billion in the first six months of 2026 from $2.67 billion a year earlier. Capital expenditures declined to $1.72 billion from $2 billion.
Free cash flow more than doubled to $1.57 billion from $742 million. The improvement gives UPS greater flexibility to fund network investments, meet financial obligations and return capital to shareholders.
Other Aspects of UPS’ Full-Year 2026 Outlook
Capital expenditures are still projected at roughly $3 billion. Dividend payments are expected to total around $5.4 billion, subject to board approval, while the effective tax rate is forecasted to be approximately 23%.
Currently, UPS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q2 Performances of Other Transportation Companies
Delta Air Lines (DAL) reported second-quarter 2026 earnings (excluding 88 cents from non-recurring items) of $1.56 per share, beating the Zacks Consensus Estimate of $1.51. Earnings declined in double digits (% wise) from a year ago as sharply higher fuel costs pressured profitability.
Revenues rose on a year-over-year basis to $17.67 billion but missed the consensus estimate of $17.76 billion. Broad demand strength lifted adjusted total revenue per available seat mile, or TRASM, 12.4%, while premium and diversified revenue streams continued to expand.
United Airlines Holdings, Inc. (UAL)reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.
Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in total revenue per available seat mile, or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs.
J.B. Hunt Transport Services, Inc. (JBHT) reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%.
Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UPS Q2 Earnings Beat as Pricing and Segment Growth Accelerate

Pre-market futures are mixed at this hour, continuing Monday’s trading narrative of rotating out of the tech-heavy Nasdaq and into the blue-chip Dow. The Dow, with strong Q2 results from Coke and elsewhere, is up +413 points at present; the Nasdaq — with microchips once again bring sold — is -270 points. The S&P 500 splits the difference: -7 points, while the small-cap Russell 2000 is +2 points currently.
A third-straight quiet day in Iran may be fostering some goodwill toward reconnection for a peace agreement. (Then again, it may not.) Oil prices have definitely cooled since late last week: $81 per barrel (/bbl) on WTI and $87/bbl on Brent, as sentiment gain tacks toward a peaceful resolution. Bond yields have also settled down somewhat: +4.63% on the 10-year T-bill and +4.30% on the 2-year.
The Fed Starts 2-Day Meeting Today
Today is the first day of the fifth Federal Open Market Committee (FOMC) meeting of 2026 so far (of eight total meetings per year), and the last until mid-September. Rates have not moved since December’s quarter-point cut to a range of +3.50-3.75%, and they are not expected to go anywhere today, either.
Monthly inflation reports have depicted stubborn high costs that are not presently spiraling out of control. This suggests that, while odds now favor a rate hike for the next move at the FOMC, they likely won’t be in any rush to do so. That said, we have seen PCE inflation increase by 30 basis points (bps) or higher month over month since March, reaching +4.1% in June. CPI for June, on the other hand, saw a big drop to +3.5% in its latest report. Most likely, the Fed stays in “wait and see” mode.
Trade Balance, Inventories Come in Slightly Lighter
Headline U.S. Trade Balance for June was slightly deeper than estimates but improved month over month: -$101.5 billion from a revised improvement to -$105 billion in May. That print was still the deepest deficit since the all-time record -$159 billion in March of 2025, which directly preceded “Liberation Day” tariffs, which lasted one week at the start of April.
Advanced Retail Inventories fell back to 0.0% from +0.4% projected, and from the downwardly revised +0.5% for the previous month. This is the lowest since the flat read back in February of this year. Preliminary Wholesale Inventories matched the prior month’s +0.3%, 10 bps lower than expected. More relatively modest prints on the economy, writ-large. More reasons for the Fed to hold its cards today too.
Q2 Roundup: BA, KO & More
Boeing (BA) posted its third earnings miss in its last four quarters: -$0.76 vs. -$0.34 per share, for a nasty -123.5% negative surprise. Revenues, on the other hand, beat estimates in Q2: $24.56 billion versus $24.05 billion expected, with commercial airplane sales up +14% year over year. Shares are helping boost the Dow this morning, +1.3%.
Coca-Cola (KO) reported earnings that beat consensus by a solid nickel: +$0.97 per share versus $0.92 estimated. Revenues of $13.37 billion easily surpassed expectations by +2.44%. Shares are up +4% in pre-market trading, also assisting the blue-chip index, and adding to the +20% gains in the shares year to date.
UPS (UPS) made easy work of its Q2 results this morning, posting a +6.67% positive surprise with earnings of $1.76 per share on $22.83 billion in revenues, which beat estimates by nearly +5%. Shares are flagging after a move higher immediately following the Q2 news; shares had been +7.8% over the past month.
Sherwin-Williams (SHW) posted strong results for its Q2 report ahead of today’s open, with earnings of $3.70 per share nicely above the $3.56 in the Zacks consensus (and $3.38 per share a year ago). Revenues of $6.79 billion outperformed forecasts by +2.58%, and well higher than the $6.31 billion from a year ago. The paints and coatings giant raised guidance above earlier estimates, and shares are trading +7% higher ahead of the bell.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CocaCola Company (The) (KO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Q2 Earnings Season Gathers Steam

Tuesday, July 28th, 2026
Pre-market futures are mixed at this hour, continuing Monday’s trading narrative of rotating out of the tech-heavy Nasdaq and into the blue-chip Dow. The Dow, with strong Q2 results from Coke and elsewhere, is up +413 points at present; the Nasdaq — with microchips once again bring sold — is -270 points. The S&P 500 splits the difference: -7 points, while the small-cap Russell 2000 is +2 points currently.
A third-straight quiet day in Iran may be fostering some goodwill toward reconnection for a peace agreement. (Then again, it may not.) Oil prices have definitely cooled since late last week: $81 per barrel (/bbl) on WTI and $87/bbl on Brent, as sentiment gain tacks toward a peaceful resolution. Bond yields have also settled down somewhat: +4.63% on the 10-year T-bill and +4.30% on the 2-year.
The Fed Starts 2-Day Meeting Today
Today is the first day of the fifth Federal Open Market Committee (FOMC) meeting of 2026 so far (of eight total meetings per year), and the last until mid-September. Rates have not moved since December’s quarter-point cut to a range of +3.50-3.75%, and they are not expected to go anywhere today, either.
Monthly inflation reports have depicted stubborn high costs that are not presently spiraling out of control. This suggests that, while odds now favor a rate hike for the next move at the FOMC, they likely won’t be in any rush to do so. That said, we have seen PCE inflation increase by 30 basis points (bps) or higher month over month since March, reaching +4.1% in June. CPI for June, on the other hand, saw a big drop to +3.5% in its latest report. Most likely, the Fed stays in “wait and see” mode.
Trade Balance, Inventories Come in Slightly Lighter
Headline U.S. Trade Balance for June was slightly deeper than estimates but improved month over month: -$101.5 billion from a revised improvement to -$105 billion in May. That print was still the deepest deficit since the all-time record -$159 billion in March of 2025, which directly preceded “Liberation Day” tariffs, which lasted one week at the start of April.
Advanced Retail Inventories fell back to 0.0% from +0.4% projected, and from the downwardly revised +0.5% for the previous month. This is the lowest since the flat read back in February of this year. Preliminary Wholesale Inventories matched the prior month’s +0.3%, 10 bps lower than expected. More relatively modest prints on the economy, writ-large. More reasons for the Fed to hold its cards today too.
Q2 Roundup: BA, KO & More
Boeing BA posted its third earnings miss in its last four quarters: -$0.76 vs. -$0.34 per share, for a nasty -123.5% negative surprise. Revenues, on the other hand, beat estimates in Q2: $24.56 billion versus $24.05 billion expected, with commercial airplane sales up +14% year over year. Shares are helping boost the Dow this morning, +1.3%.
Coca-Cola KO reported earnings that beat consensus by a solid nickel: +$0.97 per share versus $0.92 estimated. Revenues of $13.37 billion easily surpassed expectations by +2.44%. Shares are up +4% in pre-market trading, also assisting the blue-chip index, and adding to the +20% gains in the shares year to date. For more on KO’s earnings, click here.
UPS UPS made easy work of its Q2 results this morning, posting a +6.67% positive surprise with earnings of $1.76 per share on $22.83 billion in revenues, which beat estimates by nearly +5%. Shares are flagging after a move higher immediately following the Q2 news; shares had been +7.8% over the past month. For more on UPS’ earnings, click here.
Sherwin-Williams SHW posted strong results for its Q2 report ahead of today’s open, with earnings of $3.70 per share nicely above the $3.56 in the Zacks consensus (and $3.38 per share a year ago). Revenues of $6.79 billion outperformed forecasts by +2.58%, and well higher than the $6.31 billion from a year ago. The paints and coatings giant raised guidance above earlier estimates, and shares are trading +7% higher ahead of the bell. For more on SHW’s earnings, click here.
Questions or comments about this article and/or author? Click here>>
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CocaCola Company (The) (KO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Mostly Quiet Ahead of Fed Decision

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United Parcel Service Q2 26 Earnings Conference Call At 8:30 AM ET

United Parcel Service (UPS) came out with quarterly earnings of $1.76 per share, beating the Zacks Consensus Estimate of $1.65 per share. This compares to earnings of $1.55 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +6.67%. A quarter ago, it was expected that this package delivery service would post earnings of $1.04 per share when it actually produced earnings of $1.07, delivering a surprise of +2.88%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
UPS, which belongs to the Zacks Transportation - Air Freight and Cargo industry, posted revenues of $22.83 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.98%. This compares to year-ago revenues of $21.22 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
UPS shares have added about 13.9% since the beginning of the year versus the S&P 500's gain of 8.3%.
What's Next for UPS?
While UPS has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for UPS was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.75 on $22.09 billion in revenues for the coming quarter and $7.10 on $90.32 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Air Freight and Cargo is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
GXO Logistics (GXO), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 4.
This contract logistics provider is expected to post quarterly earnings of $0.58 per share in its upcoming report, which represents a year-over-year change of +1.8%. The consensus EPS estimate for the quarter has been revised 0.3% higher over the last 30 days to the current level.
GXO Logistics' revenues are expected to be $3.45 billion, up 4.6% from the year-ago quarter.
Should You Invest in United Parcel Service, Inc. (UPS)?
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Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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GXO Logistics, Inc. (GXO) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

United Parcel Service (UPS) Beats Q2 Earnings and Revenue Estimates

(RTTNews) - United Parcel Service Inc. (UPS) released a profit for second quarter that Drops, from the same period last year
The company's bottom line totaled $604 million, or $0.71 per share. This compares with $1.283 billion, or $1.51 per share, last year.
Excluding items, United Parcel Service Inc. reported adjusted earnings of $1.495 billion or $1.76 per share for the period.
The company's revenue for the period rose 7.6% to $22.834 billion from $21.221 billion last year.
United Parcel Service Inc. earnings at a glance (GAAP) :
-Earnings: $604 Mln. vs. $1.283 Bln. last year. -EPS: $0.71 vs. $1.51 last year. -Revenue: $22.834 Bln vs. $21.221 Bln last year.
-Guidance: Full year EPS guidance: $ 7.22 Full year revenue guidance: $ 91.2 B
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

United Parcel Service Inc. Q2 Income Drops

The following companies are expected to report earnings prior to market open on 07/28/2026. Visit our Earnings Calendar for a full list of expected earnings releases.
Coca-Cola Company (KO)is reporting for the quarter ending June 30, 2026. The beverages company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.92. This value represents a 5.75% increase compared to the same quarter last year. In the past year KO has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 6.17%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for KO is 25.23 vs. an industry ratio of 11.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Boeing Company (BA)is reporting for the quarter ending June 30, 2026. The aerospace and defense company's consensus earnings per share forecast from the 6 analysts that follow the stock is $-0.34. This value represents a 72.58% increase compared to the same quarter last year. Zacks Investment Research reports that the 2026 Price to Earnings ratio for BA is -634.91 vs. an industry ratio of -0.20.
S&P Global Inc. (SPGI)is reporting for the quarter ending June 30, 2026. The securities exchange company's consensus earnings per share forecast from the 4 analysts that follow the stock is $4.49. This value represents a 1.35% increase compared to the same quarter last year. SPGI missed the consensus earnings per share in the 4th calendar quarter of 2025 by -0.46%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for SPGI is 23.21 vs. an industry ratio of 22.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Corning Incorporated (GLW)is reporting for the quarter ending June 30, 2026. The communications company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.76. This value represents a 26.67% increase compared to the same quarter last year. In the past year GLW has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2026 Price to Earnings ratio for GLW is 46.12 vs. an industry ratio of 26.20, implying that they will have a higher earnings growth than their competitors in the same industry.
United Parcel Service, Inc. (UPS)is reporting for the quarter ending June 30, 2026. The transportation company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.65. This value represents a 6.45% increase compared to the same quarter last year. UPS missed the consensus earnings per share in the 2nd calendar quarter of 2025 by -0.64%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for UPS is 16.17 vs. an industry ratio of 19.30.
Illinois Tool Works Inc. (ITW)is reporting for the quarter ending June 30, 2026. The machinery company's consensus earnings per share forecast from the 6 analysts that follow the stock is $2.80. This value represents a 8.53% increase compared to the same quarter last year. In the past year ITW has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 4.31%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for ITW is 24.89 vs. an industry ratio of -7.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Royal Caribbean Cruises Ltd. (RCL)is reporting for the quarter ending June 30, 2026. The leisure (recreational) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $3.97. This value represents a 9.36% decrease compared to the same quarter last year. RCL missed the consensus earnings per share in the 4th calendar quarter of 2025 by -0.36%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for RCL is 16.98 vs. an industry ratio of -213.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Sherwin-Williams Company (SHW)is reporting for the quarter ending June 30, 2026. The chemical company's consensus earnings per share forecast from the 6 analysts that follow the stock is $3.56. This value represents a 5.33% increase compared to the same quarter last year. SHW missed the consensus earnings per share in the 2nd calendar quarter of 2025 by -10.11%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for SHW is 26.95 vs. an industry ratio of 16.90, implying that they will have a higher earnings growth than their competitors in the same industry.
American Tower Corporation (REIT) (AMT)is reporting for the quarter ending June 30, 2026. The reit company's consensus earnings per share forecast from the 4 analysts that follow the stock is $2.65. This value represents a 1.92% increase compared to the same quarter last year. In the past year AMT has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 7.17%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for AMT is 15.64 vs. an industry ratio of 14.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Ecolab Inc. (ECL)is reporting for the quarter ending June 30, 2026. The chemical company's consensus earnings per share forecast from the 9 analysts that follow the stock is $2.08. This value represents a 10.05% increase compared to the same quarter last year. ECL missed the consensus earnings per share in the 2nd calendar quarter of 2025 by -0.53%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for ECL is 32.85 vs. an industry ratio of 16.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Hilton Worldwide Holdings Inc. (HLT)is reporting for the quarter ending June 30, 2026. The hotel company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.29. This value represents a 4.09% increase compared to the same quarter last year. In the past year HLT has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 2.55%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for HLT is 35.99 vs. an industry ratio of 18.90, implying that they will have a higher earnings growth than their competitors in the same industry.
PACCAR Inc. (PCAR)is reporting for the quarter ending June 30, 2026. The auto (domestic) company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.33. This value represents a 2.92% decrease compared to the same quarter last year. In the past year PCAR has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2026 Price to Earnings ratio for PCAR is 23.36 vs. an industry ratio of 26.90.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Market Earnings Report for July 28, 2026 : KO, BA, SPGI, GLW, UPS, ITW, RCL, SHW, AMT, ECL, HLT, PCAR

Key Points
Energy Transfer sports a 6.6% yield and could see high distribution growth ahead, thanks to its exposure to the AI data center trend.
Stabilizing results suggest Pfizer will maintain its nearly 7% dividend yield and eventually re-rate from its current super-low valuation.
An improving macro backdrop points to a further recovery for UPS stock, which currently has a forward yield of 5.7%.
When it comes to high-yield dividend stocks, it's not a matter of quantity, but of quality. There are numerous stocks with forward dividend yields of 5% or higher, but many of them are firmly in the "yield trap" category.
That is, either they are at risk of a dividend cut or of price declines that exceed the returns from their quarterly cash payouts. It's best to be selective with dividend stocks, but filtering for quality, a few stocks stand out as compelling long-term buys in today's market: Energy Transfer (NYSE: ET), Pfizer (NYSE: PFE), and United Parcel Service (NYSE: UPS).
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Energy Transfer offers a high yield and an AI growth catalyst
Energy Transfer is a master limited partnership (MLP) focused on owning midstream energy assets like pipelines. As a pass-through entity, Energy Transfer pays out most of its pretax income to investors as quarterly cash distributions. Based on the current distribution rate, this MLP stock has a forward yield of 6.6%.
Historically, Energy Transfer has steadily increased payouts by an average of 2% to 4% annually. However, payout growth could be far greater going forward, thanks to Energy Transfer's indirect exposure to the artificial intelligence (AI) megatrend.
AI data centers, hungry for energy, are boosting demand for midstream energy infrastructure. Capitalizing on this trend, Energy Transfer is targeting 3% to 5% annualized distribution growth in the years ahead. Assuming shares appreciate over the long term in line with distribution growth and this MLP continues to sport an above-average yield, this popular pipeline stock could deliver solid total returns for long-term investors.
"Yield trap" worries are overblown with Pfizer
Pfizer sports a nearly 7% forward dividend yield. Shares also trade at a super low 8.5 times forward earnings. With these metrics, some may see "super bargain," but others see "value trap," especially given Pfizer's weak fiscal performance in recent years.
However, poor sentiment for what has become one of the most undervalued pharmaceutical stocks could work in your favor. Yes, Pfizer continues to contend with dwindling demand for COVID-19 vaccines and treatments. The company also faces a major patent cliff in 2028, when it loses patent exclusivity on its flagship drug, anticoagulant Eliquis.
Still, the company expects the rest of its product lines to experience sales growth of 4% in 2026. Sell-side forecasts call for earnings of $2.94 per share, which, based on annual dividends of $1.72 per share, implies a forward payout ratio of around 59%. That may not be ideal, but if Pfizer can offset declines in COVID-19 and Eliquis sales with new products, it could sustain further dividend growth. Shares will likely rerate back toward a low-teens forward valuation.
United Parcel Service could keep stumping the skeptics
United Parcel Service, better known as UPS, has a forward dividend yield of 5.7%. The company has a 16-year track record of annual dividend increases, but payout growth has slowed in more recent years. There have also been concerns about UPS' high payout ratio, which could indicate a possible dividend cut down the road.
Yet while UPS may also give off some "yield trap" vibes, there's a reason why shares in the shipping company have bounced back in recent months. Despite concerns such as Amazon's decision to enter the logistics business, favorable developments, like rising freight rates, bode well for the space.
While analysts anticipate flat earnings growth this year, favorable pricing conditions could give way to stronger results in 2027. That's when consensus estimates call for earnings to increase from $7.13 to $8.02 per share. As earnings bounce and coverage of $6.56 per share in annual dividends further improves, UPS could provide steady cash returns while continuing its recovery. Consider it a buy now, but any subsequent wave of near-term weakness can make it an even stronger long-term buy.
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Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Pfizer, and United Parcel Service. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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