Negative

From Nasdaq: 2025-02-11 15:00:00

UPS recently announced a 0.6% increase in its quarterly dividend payout to $1.64 per share, with a current dividend yield of 5.7%. The company has a strong dividend growth history and plans to repurchase shares worth $1 billion in 2025. UPS’ valuation is attractive, with a forward price/sales ratio of 1.09X.

Despite these positive developments, UPS faces challenges such as a reduction in business with Amazon, leading to a lackluster revenue guidance for 2025. Analysts have been revising earnings estimates downward, and the company’s stock has underperformed in the past year. Additionally, rising labor costs and debt levels pose further concerns for UPS.

Given the headwinds and negative sentiment surrounding UPS, investors may want to steer clear of the stock. With EPS estimates moving south and uncertainty about future performance, UPS currently carries a Zacks Rank #4 (Sell). The company’s weak current performance and uncertain future outlook make it a risky investment option at this time.



Read more at Nasdaq: Right Time to Buy UPS Stock After Recent Dividend Hike?