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 business with strong returns on capital, but with noticeable pressure on operating efficiency and the balance sheet. On valuation multiples, the picture is mixed: P/E, P/S, and P/FCF are below the industry median, which supports the idea of moderate undervaluation; however, P/B is significantly above the industry level, which usually means the market is already pricing in high capital quality and limiting the re-rating potential. The trend in P/E and P/S has generally been stable, without signs of a sharp cheapening, so the case for strong upside from valuation alone does not look convincing. Returns on capital remain very high: ROE, ROA, ROI, and return on tangible equity are noticeably above industry benchmarks, which is the company’s main fundamental strength. At the same time, these metrics have declined versus earlier periods, meaning quality remains high, but the trend is no longer improving. Profit margins have also weakened: net profit margin and operating margin are below the industry median and have been steadily declining, indicating pressure from pricing, costs, or network utilization. Revenue and gross profit remain large and relatively stable, and gross margin is still very strong, confirming the business’s ability to generate gross profit. However, EBITDA and operating profit have fallen noticeably compared with stronger quarters, and net income on a TTM basis looks weaker than in previous periods. The debt burden looks high for a business like this: debt/equity is significantly above the industry, long-term debt is large and has barely declined, and the current ratio is below the median while the quick ratio is effectively zero, increasing sensitivity to any deterioration in cash flow. Dividend yield remains positive, but it has declined versus prior periods, so the dividend factor supports the valuation only moderately. Overall, UPS fundamentals seem to justify a cautious downward revision of the forecast rather than an increase in the target, since strong profitability and acceptable valuation multiples are offset by deteriorating margins, weak liquidity, and high leverage. For an investor, this is not a story about aggressive growth, but about a high-quality yet already mature asset with limited revaluation potential and a greater need for a recovery in operating performance.

United Parcel Service, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно упал. Медведи в растерянности.

Strong index, significantly down. The bears are confused.

Сильный индекс, незначительно вырос. Рынок не поддерживает быков.

Strong index, slightly up. The market does not support the bulls.

Сильный индекс, незначительно упал. Рынок на стороне медведей.

Strong index, slightly down. The market is on the bears' side.

Слабый индекс, незначительно вырос

Слабый индекс, незначительно упал. Приток средств в шорты остался положительным, но снизился.

Weak index, slightly down. The inflow of funds into shorts remained positive, but decreased.

UPS remains profitable and efficient, but margin, liquidity, and debt burden are weakening the picture; the valuation looks more fair than cheap.

Key Points
Early last year, UPS began scaling back the amount of work it was doing for Amazon.
Although the partnership generated plenty of revenue, it was also crimping profits.
While there’s room for improvement, the tough decision looks like it was the right one.
Most companies want to do more business. Not all business is necessarily worth doing though.
That's the dilemma that logistics outfit United Parcel Service (NYSE: UPS) had been facing for some time before deciding early last year to scale back the amount of delivery work it was doing for e-commerce giant Amazon (NASDAQ: AMZN). While this relationship generated plenty of revenue, the company felt the revenue it generated was no longer profitable enough.
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 »
That's why, all told, it ultimately cut its Amazon volume by more than half. Here's what this could mean for the stock.
The plan appears to have worked as hoped. While sales are down slightly (albeit, not nearly as much as one might expect) since then, gross profits and operating cash flow appear to be stabilizing and even teasing the possibility of recovering at a faster rate than revenue is expected to in 2027.
Arguably, most encouraging is the fact that, despite soaring fuel costs in the meantime, UPS's earnings before interest, taxes, depreciation, and amortization (EBITDA) margins and gross margins are both holding up at levels well above 2024's when the cost of continuing to do so much business with Amazon became untenable.
The likelihood of returning to 2022's amazing profitability anytime soon is very low, for the record. That was the proverbial perfect storm for its business. Despite the prices of diesel fuel, jet fuel, and gasoline soaring in 2022 before easing back to more palatable levels in 2023 and 2024, the lingering COVID-19 pandemic continued to spur consumers to do a great deal of their shopping online. UPS just wasn't able to navigate that price volatility as well as Amazon did.
In UPS's CEO Carol Tomé's own words on the matter, however, by "taking control of our destiny," the company's future now looks measurably brighter than it did just a couple of years ago.
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 $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 212% 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 September 13, 2026.
James Brumley 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.

UPS Cut Amazon Volumes on Purpose. The Margin Data Says It Worked.

United Parcel Service (UPS) closed the most recent trading day at $102.29, moving -1.17% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.38%. Elsewhere, the Dow saw a downswing of 0.51%, while the tech-heavy Nasdaq depreciated by 0.29%.
The stock of package delivery service has risen by 0.29% in the past month, leading the Transportation sector's loss of 3.4% and undershooting the S&P 500's gain of 2.08%.
Investors will be eagerly watching for the performance of United Parcel Service in its upcoming earnings disclosure. The company is expected to report EPS of $1.63, down 6.32% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $22.11 billion, indicating a 3.26% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.22 per share and a revenue of $91.37 billion, representing changes of +0.84% and +3.06%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for United Parcel Service. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.09% rise in the Zacks Consensus EPS estimate. Currently, United Parcel Service is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, United Parcel Service is currently exchanging hands at a Forward P/E ratio of 14.33. This represents a discount compared to its industry average Forward P/E of 15.44.
Meanwhile, UPS's PEG ratio is currently 1.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.72 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 98, this industry ranks in the top 40% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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United Parcel Service (UPS) Dips More Than Broader Market: What You Should Know

Air T, Inc.’s AIRT investors have been experiencing some short-term gains from the stock lately. Shares of the Minneapolis, MN-based holding company gained 44.7% in the past three months against the industry’s 5.4% decline. It has also outperformed the sector’s loss of 2.5% and the S&P 500’s gain of 0.1% in the same time frame.
A major development of AIRT in recent months includes the announcement of its promising first-quarter fiscal 2027 results in August. In the fiscal first quarter, the company reported higher sales, mainly driven by a full quarter of Rex operations and contributions from the new aviation leasing and asset management segment. Air T operates through six reportable segments. Overnight air cargo revenues were relatively stable, commercial aircraft, engines and parts declined on softer leasing and parts activity, ground support equipment was hurt by order timing, while digital solutions benefited from growth in data analytics and airspace management.
Management highlighted Rex’s operational transformation and the expansion of Crestone following the Arena acquisition. Aircraft availability remains a key constraint at Rex, with network restoration and fleet growth among management’s priorities. Air T remains confident in the long-term prospects of both Rex and Crestone.
AIRT’s Three Months Price Comparison
Over the past three months, the stock’s performance has remained strong, outperforming its peers like FedEx Corporation FDX and United Parcel Service, Inc. UPS. FedEx and United Parcel’s shares have lost 3.5% and 6.5%, respectively, in the same time frame.
Despite broader risks from fuel and foreign exchange volatility, geopolitical conditions and an uncertain macroeconomic environment, the favorable share price movement suggests AIRT is well-positioned to sustain its positive momentum at present.
Air T is a diversified holding company with a portfolio of aviation-focused businesses. Its operations span passenger and cargo services, aircraft and engine leasing and parts, maintenance and support services, specialized ground equipment, digital aviation solutions and aviation asset management.
AIRT's Strategic Expansion Drives Growth
Rex gives Air T a meaningful presence in Australian regional aviation, with management focused on restoring the airline’s operating foundation. Increasing aircraft availability and rebuilding the network could allow Rex to serve more routes and capture additional passenger demand. Its fully owned fleet also provides flexibility to adjust aircraft utilization as demand changes. Continued progress in restoring active aircraft and network connectivity could therefore strengthen Rex’s contribution to AIRT over time.
Crestone’s acquisition of Arena strengthens Air T’s aviation leasing and asset-management platform by combining complementary capabilities and expanding its international presence. The business generates fees from origination, due diligence and asset management, while its relationships with external capital partners can support additional investment activity without relying entirely on its own capital. The combination also creates opportunities for collaboration with AIRT’s other specialized aviation businesses.
Digital solutions continue to gain traction through expanding data analytics and airspace-management engagements. Its emphasis on recurring subscription revenues gives the business greater revenue visibility, while recent operating improvement indicates that growth is translating into a stronger contribution. Further customer adoption and engagement growth could increase the segment’s importance within Air T’s portfolio.
Air T’s Established Businesses Add Support
Overnight air cargo provides an established earnings base, supported by Air T’s longstanding relationship with FedEx and its integrated cargo, maintenance and aircraft-support capabilities. The business has demonstrated relatively stable segment profitability, while expanded labor and project activity at WASI has strengthened its contribution. This established operating base provides support as AIRT develops its newer businesses.
Air T’s capital-allocation strategy includes opportunistic share repurchases, providing another avenue for enhancing per-share value. Management has reduced the share base over time, net of issuances, demonstrating a willingness to deploy capital toward its own shares when it sees an attractive opportunity. Continued discipline around repurchases could complement growth across AIRT’s operating businesses and support longer-term shareholder value creation.
Challenges Ahead of AIRT
Rex’s aircraft availability remains a key challenge for Air T, as unscheduled engine removals and extended third-party maintenance, repair, and overhaul facilities (MRO) turnaround times are constraining the active fleet and could slow network restoration. Commercial aircraft, engines and parts softness is another concern, with lower leasing and component sales at Contrail, materials-program delays and limited parts inventory at AirCo and slower MRO exchange and repair activity at Worthington weighing on AIRT’s segment performance.
Air T Stock’s Valuation
AIRT's trailing 12-month EV/Sales of 0.8X is lower than the industry’s average of 1.3X but is higher than its five-year median of 0.6X.
FedEx and United Parcel’s trailing 12-month EV/Sales currently stand at 0.9X and 1.2X, respectively, in the same time frame.
Our Final Take on AIRT
Air T’s strong share-price momentum appears to have a fundamental foundation, supported by progress across its expanding aviation portfolio, emerging growth avenues and an established operating base. Together, these factors have strengthened AIRT's growth narrative and provided multiple avenues for longer-term value creation.
However, sustaining the rally will require consistent execution. Operational constraints at Rex and softness within parts of the commercial aircraft, engines and parts business remain key considerations and could temper the pace of improvement if they persist.
From a valuation standpoint, AIRT still appears reasonably positioned despite its sharp run-up, suggesting that successful execution of its growth initiatives could support additional upside. However, the stock has become more expensive relative to its own historical valuation, indicating that some optimism surrounding its improving business prospects is already reflected in the share price. As a result, further appreciation is likely to depend increasingly on tangible progress at Rex, successful scaling of Crestone and sustained growth across its other businesses.
For existing shareholders, the combination of Rex’s recovery potential, Crestone’s expanded asset-management capabilities, digital growth and stability from the cargo business supports staying invested. Prospective investors may also find AIRT worth considering, although the magnitude of the recent rally warrants some caution. The momentum has scope to continue, but maintaining it will require Air T to translate its expanding aviation platform into sustained operational and financial improvement.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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
Air T, Inc. (AIRT): Free Stock Analysis Report

Air T Gains Nearly 45% in Three Months: What's Driving the Stock?

In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, United Parcel Service Inc (Symbol: UPS) has taken over the #156 spot from General Motors Co (Symbol: GM), according to The Online Investor.
Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company's stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much — that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true "apples-to-apples" comparison of the value of two stocks. In the case of United Parcel Service Inc (Symbol: UPS), the market cap is now $78.10 billion, versus General Motors Co (Symbol: GM) at $75.74 billion.
Below is a chart of United Parcel Service Inc versus General Motors Co plotting their respective size rank within the S&P 500 over time (UPS plotted in blue; GM plotted in green):
Below is a three month price history chart comparing the stock performance of UPS vs. GM:
Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers — much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV's). This can have a direct impact on which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and "tosses out" the biggest 100 companies so as to focus solely on the 400 smaller "up-and-comers" (which in the right environment can outperform their larger rivals). So a company's market cap, especially in relation to other companies, carries great importance, and for this reason we at The Online Investor find value to putting together these rankings daily.
Examine the full UPS market cap history vs. the full GM market cap history.
At the closing bell, UPS is off about 1.5%, while GM is off about 1% on the day Tuesday.
Further UPS Research:

United Parcel Service Now #156 Largest Company, Surpassing General Motors

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Palantir Technologies Inc (Symbol: PLTR), where a total of 276,415 contracts have traded so far, representing approximately 27.6 million underlying shares. That amounts to about 62.1% of PLTR's average daily trading volume over the past month of 44.5 million shares. Especially high volume was seen for the $190 strike call option expiring September 04, 2026, with 24,042 contracts trading so far today, representing approximately 2.4 million underlying shares of PLTR. Below is a chart showing PLTR's trailing twelve month trading history, with the $190 strike highlighted in orange:
United Parcel Service Inc (Symbol: UPS) options are showing a volume of 28,381 contracts thus far today. That number of contracts represents approximately 2.8 million underlying shares, working out to a sizeable 61.9% of UPS's average daily trading volume over the past month, of 4.6 million shares. Especially high volume was seen for the $115 strike call option expiring November 20, 2026, with 11,815 contracts trading so far today, representing approximately 1.2 million underlying shares of UPS. Below is a chart showing UPS's trailing twelve month trading history, with the $115 strike highlighted in orange:
And Boston Scientific Corp. (Symbol: BSX) options are showing a volume of 119,060 contracts thus far today. That number of contracts represents approximately 11.9 million underlying shares, working out to a sizeable 61.5% of BSX's average daily trading volume over the past month, of 19.4 million shares. Particularly high volume was seen for the $60 strike call option expiring December 18, 2026, with 50,280 contracts trading so far today, representing approximately 5.0 million underlying shares of BSX. Below is a chart showing BSX's trailing twelve month trading history, with the $60 strike highlighted in orange:
For the various different available expirations for PLTR options, UPS options, or BSX options, visit StockOptionsChannel.com.
Further PLTR Research:

Noteworthy Tuesday Option Activity: PLTR, UPS, BSX

Key Points
Income investors remain uncertain about whether UPS can maintain its high 6.2% payout level.
The company's turnaround is ongoing, with forecasts calling for continued steady earnings growth.
This points to improved dividend coverage and the potential for solid share price appreciation.
United Parcel Service (NYSE: UPS), aka UPS, may be a famous company, but it is not necessarily a top choice among dividend stocks. Sure, shares in the parcel delivery company sport a high dividend yield of 6.2%, but concerns still linger about its ability to sustain such a high payout amid a years-long downturn.
Yet while UPS's 16-year dividend growth streak has ended, there's much merit in buying this stock today, both for its yield and for the potential for further upside from its ongoing turnaround.
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 »
Investors remain on the fence about UPS
Over the past few years, UPS has been struggling to get over its post-pandemic hangover. While it has been getting better lately, the company has yet to hit its previous high-water mark for profitability. As seen in UPS's latest quarterly earnings, efforts such as pivoting away from low-margin Amazon orders toward higher-margin business customers are helping improve the bottom line.
But even as results beat expectations, investors reacted negatively. Again, concerns about future results and the dividend's future still linger.
Why dividend doubts are overdone
With annual dividend payments totaling $6.56 per share against forecasts calling for adjusted earnings of around $7.22 per share this year, UPS has a nearly 91% forward payout ratio. That ratio is well above what's considered healthy or sustainable.
Although UPS recently decided not to raise its payout, fears of a dividend cut remain. On the latestearnings conference call CFO Brian Dykes reiterated plans to maintain the current payout rate. This suggests an opportunity to buy UPS today and collect its above-average yield while gaining exposure to the ongoing turnaround. Analysts remain confident in further improved results, with forecasts calling for earnings growth averaging around 7% between now and 2029.
Better yet, the stock could also rerate. UPS trades for 14.5 times forward earnings, while competitor FedEx trades for around 16 times forward earnings. If results meet current expectations and valuation converges, UPS, trading for around $105 today, could be trading north of $140 in three years' time.
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 $437,097!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,355,077!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% 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 September 1, 2026.
Thomas Niel 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 recommends FedEx. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

This Under-the-Radar Dividend Stock Yields 6.2%. Is It a Buy?

UPS (NYSE: UPS) reported high-single-digit revenue growth in its latest investor update.
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 »
*Stock prices used were the afternoon prices of Aug. 28, 2026. The video was published on Aug. 30, 2026.
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 $440,710!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% 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 August 31, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends United Parcel Service. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Is UPS Stock an Undervalued Dividend Stock That Passive Income Investors Should Buy Right Now?

This company handed nearly one-third of its value back to shareholders last year. I'm talking about 30.5% of the market cap back to its owners!
By contrast, the S&P 500 yields 1.0%, an all-time low. So we're talking about a stock that is dishing 30 times the dividend yield of "America's ticker."
The headline yield on Albertsons Cos. (ACI) doesn't do its "total yield" justice. It reads 5.5%. Sure, but the grocer also offered an additional 25% rebate via buybacks. This number is invisible to every yield screen, stock scanner, and (yes) AI prompt asking about dividends. Which is great for contrarians like us searching for value!
ACI isn't alone. Below we'll talk about five total yield monsters (ACI included) that are buying back their own dividend-paying shares like crazy. This is a wonderful 1-2 punch because each repurchased share increases the value of each remaining share. And it makes sure that the next dividend hike packs even more power because that can (and often does!) ignite a flagging share price.
It's a phenomenon I call the "Dividend Magnet."
The logic is simple. Investors are attracted to companies that fork over more and more cash to pay bigger dividends each year. It's not just the income, either--each dividend-increase announcement is a loud signal that business is so good, and they're making so much cash, that they can afford to pledge even more money for its stockholders.
Let's take a look at those five potential Dividend Magnets in the making that are paying us from 7.2% to 30.5% in "all-in" shareholder yields.
United Parcel Service (UPS)
Dividend Yield: 6.1%
Total Yield: 7.2%
United Parcel Service (UPS) gets just about anything one can think of from Point A to Point B--express letters, documents, packages, even freight--across more than 220 countries. It also provides a number of other services, including international air and ocean freight forwarding, customs brokerage, healthcare logistics and much more.
At first glance, UPS looks like a steal. We're able to earn more than 5% from one of the world's largest courier companies and a true blue-chip stock? And we're getting a couple additional points from buybacks?
What's the catch?
UPS Is Spending a Lot but Going Nowhere Fast
UPS shares have hemorrhaged thanks to pressure on several fronts. It has been cutting out low-margin shipments from its largest customer, Amazon (AMZN), while trying to pivot toward more lucrative services. Spiking oil prices haven't helped, nor have shrinking shipping volumes.
United Parcel Service has been trying to throw shareholders a lifeline by throwing billions of dollars in cash at dividends and buybacks, which is laudable.
But the math is uncomfortable. Dividends are eating up 90% of 2026 adjusted earnings estimates and virtually all of the company's free cash flow--leaving almost nothing in reserve if business deteriorates further.
CFO Brian Dykes has already said the dividend won't be raised this year. But that might be a best-case scenario.
H&R Block (HRB)
Dividend Yield: 3.2%
Total Yield: 9.7%
H&R Block (HRB) is a tax-preparation company that provides both assisted and do-it-yourself prep solutions not just in the U.S., but also Canada and Australia. It has other businesses, including small business financial solutions, term loans and tax identity protection, but tax prep is the bedrock here.
It's a fairly cyclical business insofar as a larger employment base provides H&R Block with more customers. However, one thing that remains the same from one year to the next is the complexity of tax codes, creating constant demand for its services. The company has delivered four consecutive years of stable if not growing revenues and profits (and is expected to deliver a fifth in 2026), but prior to that, HRB went through plenty of wavering on both the top and bottom lines.
H&R Block has been plenty steady with shareholder rewards, however. The dividend has grown for 12 consecutive years and has either been stable or rising for almost three decades. Buybacks rarely will be as consistent as dividends, and that's the case with HRB. Still, share repurchases have been part of the cash gameplan for years, and its recent heavy buying takes a modest 3% dividend yield to a shareholder yield of almost 10%.
While HRB shares have been volatile over the past few years, dividends and buybacks have helped lift the stock over the long run.
That Cash Makes a Difference
The stock doesn't trade for as deep a discount as it did a few months back, but HRB still looks cheap. It's priced at less than 9 times 2026 earnings estimates and a price/earnings-to-growth (PEG) ratio of just 0.7. (Remember: A PEG of under 1 is considered undervalued.)
Preferred Bank (PFBC)
Dividend Yield: 3.1%
Total Yield: 10.7%
Preferred Bank (PFBC) is a California-based "regional" bank that provides a wide variety of banking products and services. That includes a number of personal offerings such as checking, savings and money market deposit accounts. And it also includes things like commercial loans, real estate mortgage loans, term loans, SBA loans, trade finance and more.
Why "regional"? Preferred's Los Angeles headquarters and 11 full-service branches in California make up the majority of its physical footprint, but not all of it--PFBC also has a branch in Flushing, New York, and another in the Houston suburb of Sugar Land. Also of note: The company was originally founded as a Chinese-American bank; while most of its business is more mainstream nowadays, Preferred says it still continues "to benefit from the significant migration to California of ethnic Chinese from China and other areas of East Asia."
PFBC is a longtime growth story backed by generally high-quality assets. It ran into top- and bottom-line hurdles in 2024 and 2025, but the company at least appears to be getting back on track. Deposits and loans are inching higher again, and margins are improving.
Investors powered through that two-year operational slump, choosing to keep their eye on the growing amount of cash Preferred Bank has been dishing out. The company has more than doubled its dividend over the past five years, and it shelled out an all-time high $93 million in share buybacks in 2025.
The Dividend Magnet Kicked On When PFBC Ramped Up Repurchases
Preferred Bank isn't particularly cheap, though. Its sub-10 forward P/E, while nominally low, is on the high side compared to the past few years. And while PFBC historically trades at a premium to book, its 1.6 P/B is relatively high, too.
Oxford Industries (OXM)
Dividend Yield: 7.6%
Total Yield: 18.1%
Oxford Industries (OXM) is a "lifestyle" apparel company. Brands like Tommy Bahama, Lilly Pulitzer, Southern Tide, Duck Head and others sell a variety of clothing and accessories. But they also offer (or license their brand names to others who sell) indoor and outdoor furniture, bedding and bath products, fragrances, even resort operations.
It's rare to find dividends this rich in any consumer company, let alone a high-end cyclical name. We can thank both aggressive dividend growth and a hemorrhaging of shares over the past few years.
A Fat Dividend and Buybacks Haven't Been Enough to Pull Shares Higher
Given its brands' wider offerings and an affluent target consumer, Oxford's financials have historically been less fickle than the average mall retailer. But the company ran into trouble in 2023 when it had to write down $114 million, most of which was impairment charges for the Johnny Was business it acquired in 2022.
But investors have really been spooked over the past two years. Revenues retreated in both 2024 and 2025. While profits still rebounded in 2024, the company actually absorbed a net loss last year thanks in large part to another impairment charge connected to Johnny Was.
OXM's bottom line is expected to snap back hard; adjusted earnings estimates are for a mid-teen improvement this year and a 20%-plus jump in 2027. Dividend investors should hope so. While the company has continued to grow its dividend despite financial turbulence, its projected $2.80 in annual dividends will far outstrip the $2.46 it is expected to earn this year, and it would be tightly covered under next year's projected $3.02.
Oxford has ratcheted back repurchases, so it's possible it's defending its dividend. But investors should know that OXM has played fast and loose with its distribution, cutting it both during the pandemic and Great Recession.
Albertsons Cos. (ACI)
Dividend Yield: 5.5%
Total Yield: 30.5%
Albertsons Cos. (ACI) is one of the largest grocery and pharmacy chains in the country, boasting 2,240 retail locations under brands including Albertsons, Safeway, Vons, Jewel-Osco, ACME, Shaw's, Star Market and many more.
Consumer staples stocks typically deliver above-average income, but Albertsons is in a class of its own: a 5%-plus yield at current prices, and that's before we count ACI's show-stopping buybacks.
Albertsons previously had a history of buying back a few shares every year. But the company's planned merger with Kroger fell apart in late 2024, and in 2025, it pushed forward with a $750 million accelerated share repurchase (ASR) and increased its existing authorization from $2 billion to $2.75 billion to accommodate the ASR. All told, the grocer ended up spending roughly $1.5 billion on repurchasing nearly 79 million shares. The company then tacked on another $900 million to its authorization in April 2026.
ACI also announced a 13% increase to the dividend in April, to 17 cents per share.
That $1.5 billion spent on buybacks plus $323 million worth of dividends is how a $5.98 billion company delivers a 30% shareholder yield.
But That Still Hasn't Been Enough to Keep the Dividend Magnet On
Albertsons has given shareholders very little to crow about. ACI is coming off a lousy Q1 in which earnings missed and the company cut its full-year earnings guidance by about 20%. The Inflation Reduction Act has weighed on the company's pharmaceutical operations. CEO Susan Morris warned about "a more cautious consumer." The company's president and CFO, Sharon McCollam, announced she'll retire later this year.
The bull case? ACI's yield has plumped up (and remains extremely well-covered) while its forward P/E has been whittled down from nearly 11 last spring to below 7 today. But Albertsons still needs a catalyst, whether that's its recently announced "ACI Edge" restructuring bearing fruit, or a strengthening in consumer sentiment.
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Further UPS Research:

How a 5.5% Yield Turns Into a 30% Payday

Key Points
FedEx spun off 80.1% of its FedEx Freight division in June.
While FedEx has tread water, FedEx Freight experienced a big pullback after an initial rally.
You can make a bull case for either stock.
In June, FedEx (NYSE: FDX) spun off an 80.1% stake in FedEx Freight (NYSE: FDXF), marking the start of the delivery giant's divestiture of its less-than-truckload (LTL) freight segment. Since the spinoff, both stocks have gone in different directions.
While shares in FedEx Freight's former parent have largely remained in a narrow range during the summer, FedEx Freight shares initially experienced a big rally, only to give back those gains, and then some.
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Investors at the time of the spinoff received one share of FedEx Freight for every two shares of FedEx. The question now is whether it's time to exit both transportation stocks, keep one and sell the other, or let them both ride, viewing them as top industrial stocks.
Is FedEx transforming into a lean, mean, parcel-delivering machine?
The spinoff isn't the only way FedEx has pivoted toward its core parcel delivery business. Last month, the company also announced the sale of its FedEx Supply Chain subsidiary. FedEx still owns 19.9% of FedEx Freight. It plans to divest the remaining stake either through exchanges of debt for common stock and/or by distributing them to shareholders.
Yet while FedEx still has skin in the game, management's focus now shifts toward executing its Network 2.0 strategic initiative. For customers, Network 2.0 represents a streamlining of FedEx's parcel pickup and delivery, but for shareholders, the main focus is the estimated $2 billion in structural cost savings.
Yet while long-term forecasts call for double-digit percentage earnings growth in 2027 and 2028, doubts remain. Fuel surcharges helped to mitigate the impact of soaring energy prices, but Amazon's move into the third-party logistics and shipping sector represents a major competitive threat to FedEx. Amazon is using tactics such as lower rates to gain market share.
Only time will tell whether Amazon affects FedEx's earnings growth, but keep in mind how success with Network 2.0 may already be baked into the stock's valuation. Right now, FedEx trades for 16 times forward earnings, a modest premium to rival UPS's forward multiple of about 14. For FedEx's efforts to translate into major gains in the stock, Network 2.0 needs to meet or exceed cost-reduction expectations. The company also needs to maximize customer retention amid the rising competition from Amazon.
Long-term FedEx investors may still want to sit tight. However, for anyone entering or adding to a position, you may want to wait for the next wave of turbulence.
FedEx Freight and its heavy "show me" discount
As an LTL freight-hauling company, FedEx Freight competes with companies like Old Dominion Freight Line. LTLs ship partial truckloads of goods for smaller industrial customers over shorter distances. The big opportunity for FedEx Freight lies in its discounted valuation.
Currently, FedEx Freight trades for about 25 times forward earnings. Competitor Old Dominion, on the other hand, trades for roughly 36 times forward earnings. Closing this valuation gap would mean major price appreciation for the stock.
However, don't expect FedEx Freight's valuation to rise simply because more investors are noticing this valuation discrepancy. It exists because Wall Street wants to see the company knock it out of the park in the coming quarters.
Much of this depends on the newly public company's execution, but external factors could also make or break the story. After softening, demand for LTL services is making a slow recovery. There's also the overhang of FedEx's eventual divestiture of its 19.9% stake. Depending on how quickly FedEx sells these shares, this could continue to weigh on FedEx Freight's performance.
Add in the fact that FedEx Freight also faces a competitive threat from Amazon, the key factor in the stock's initial post-rally pullback, and it's clear why Wall Street's staying in "show me" mode for now. Although a sentiment change would mean tremendous upside from current prices, consider waiting for concrete evidence that the situation is improving.
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FedEx Just Spun Off Its Freight Division. Which Stock Should You Own?

United Parcel Service’s UPS more than $2 billion investment across its International, Healthcare and Supply Chain Solutions businesses underscores its commitment to strengthening its global logistics network. The investments, planned through 2028, are expected to improve speed, reliability and visibility while helping customers navigate shifting trade routes, evolving regulations and supply chain disruptions.
The expansion of facilities and air capacity across Europe, Asia-Pacific and the Americas should enhance UPS’ ability to capture growth in high-value and time-sensitive markets, particularly in healthcare, technology, automotive and industrial manufacturing. New hubs in the Philippines and Hong Kong, along with expanded capabilities in South Korea and North America, should improve cross-border connectivity and increase network efficiency.
United Parcel’s focus on integrated air, ground, brokerage and distribution services could strengthen customer relationships by reducing handoffs and providing greater end-to-end control. Its investments in temperature-controlled facilities and cold-chain infrastructure are particularly favorable for healthcare logistics, where demand for reliable, time-sensitive transportation remains strong.
However, the company continues to operate amid an uncertain global trade environment. Changing tariffs, regulations, trade routes and geopolitical tensions could disrupt international shipping volumes and increase operating complexity. While United Parcel’s investments are aimed at making its network more resilient, prolonged macroeconomic and trade uncertainty could weigh on demand and limit the near-term benefits of its expanded capacity.
Share Price Performance
UPS’ shares have gained 0.3% over the past three months against the Transportation - Air Freight and Cargo industry’s 9.8% decline.
UPS’s Zacks Rank
UPS currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Investors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. EXPD and Teekay Tankers Ltd TNK.
EXPD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Expeditors has an expected earnings growth rate of 29% for 2026. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 17.15%.
Teekay Tankers currently carries a Zacks Rank #2 (Buy).
TNK has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 10.93%.
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United Parcel Service, Inc.

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