UPS showed improved profitability in its latest quarterly report despite a decrease in package volumes. The company has been cutting jobs and closing warehouses to boost operating margins. The stock is down about 23% this year, potentially offering value for long-term investors.

During the early days of the pandemic, UPS thrived due to increased online shopping, driving a wide operating margin with surging package volumes. However, as e-commerce spending cooled and competitors like Amazon gained market share, UPS had to implement cost-cutting measures. Despite mixed investor reactions, the latest quarter saw adjusted EPS beat expectations, leading to an 8% stock gain.

For value investors with a long-term horizon, UPS’ cost-cutting efforts in 2025 could pay off in 2026 and beyond, making it a potential buy before the year ends. The company still faces challenges, but strategic restructuring may lead to future growth opportunities. Consider other top stock picks for potentially higher returns.

Read more at Nasdaq: Should You Buy UPS Stock Before 2026?