UPS stock has declined by 40% over the past five years, delivering a negative total return of 28%. Despite struggles with headwinds and competition, it trades at a low valuation of 12 times earnings and offers a high dividend yield of 7.6%. Is it a good investment for the long term?

UPS saw growth in package volume, revenue, and earnings due to increased online shopping during the pandemic. However, in 2022 and 2023, volume dipped, inflation impacted spending, and labor issues led to a strike threat. Despite price hikes, higher costs caused margins and EPS to drop.

In 2024, UPS faced challenges like higher labor costs and divestments, impacting margins and EPS. In the first half of 2025, package volume decreased, revenue dipped, and EPS fell. Strategic shifts, including reducing Amazon shipments and raising prices, affected earnings.

Analysts expect UPS’ revenue and EPS to decline in 2025 due to ongoing challenges. The company aims to strengthen margins by reducing lower-margin shipments and resizing its business. While it may offer value for income investors, those seeking high-growth stocks should look elsewhere.

UPS has not provided full-year guidance, but analysts predict a revenue and EPS decline in 2025. The company’s restructuring efforts may lead to modest growth in 2026 and 2027. Investors should carefully consider the risks and potential rewards before investing in UPS.

Considerations for investing in UPS include its recent performance, strategic shifts, and analyst expectations. While it may offer value and income potential, investors seeking long-term growth may want to explore other opportunities. Research and analysis are essential before making any investment decisions.

Read more at Yahoo Finance: Could Buying UPS Stock Today Set You Up for Life?