UPS is recalibrating its business, focusing on higher-margin customers and cutting ties with others. The stock has dropped 32% year to date and 60% since its pandemic highs due to declining earnings and increased labor costs. UPS is eyeing a turnaround with a healthcare logistics segment and high-margin clients.

UPS strategically walked away from its partnership with Amazon to target higher-margin clients. The company has been building up its healthcare logistics business, aiming to reach $20 billion in revenue by 2026. Healthcare clients value reliability, potentially leading to higher-margin deliveries and a turnaround for UPS.

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