Why UPS Stock Plunged in April

From Nasdaq: 2025-05-01 15:27:00

Shares of United Parcel Service (NYSE: UPS) dropped 18% after the U.S. tariff announcement in April, finishing down 13.4% for the month. UPS has lost over half its value in less than three years due to macroeconomic worries and streamlining efforts. The prospects of a trade war have clouded investor hopes for a turnaround.

Despite challenges, UPS is targeting $3.5 billion in cost reductions by 2025 and expanding into higher-margin verticals like healthcare. The company is also acquiring Andlauer Healthcare Group for $1.6 billion to enhance capabilities in Canada. With a nearly 7% dividend yield, UPS could be a good long-term investment for patient investors.

The Motley Fool’s analyst team did not include UPS in their top 10 stocks to buy now. However, their recommended stocks have historically outperformed the market, with a total average return of 882%. Join Stock Advisor for access to their latest recommendations and potential for high returns. John Mackey, former CEO of Whole Foods Market, is a member of The Motley Fool’s board of directors.



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