UPS shares have dropped over 50% in recent years due to high labor costs, tariffs, and a shift away from Amazon. The company plans to cut costs by $3.5 billion and invest in healthcare logistics. While revenue declined, the U.S. revenue per piece grew by 9.8% in the third quarter.

Despite challenges, UPS is making progress in reducing reliance on Amazon and improving profitability. Rival FedEx reported better-than-expected results, and UPS expects sales to grow 5% to 6% with adjusted earnings between $17.80 and $19 per share. UPS’ free cash flow is improving, making its dividend more sustainable.

Investors are encouraged to buy the dip on UPS as the company turns things around. The shift away from Amazon is boosting profitability, and market headwinds are starting to fade. With a more sustainable dividend and potential for stock price rebound, UPS could deliver robust total returns in the future.

Read more at Yahoo Finance: Buy the Dip on This Logistics Leader Before Its Next Leg of Compounding Growth Kicks In