United Parcel Service (UPS) reported a forward price-to-sales (P/S) ratio of 1.03x, indicating its shares are trading at a discount compared to the Zacks Transportation—Air Freight and Cargo industry. In contrast, rival FedEx (FDX) is valued at an even deeper discount, but carries a Value Score of A compared to UPS’s B. UPS shares have declined over 17% in the past year, while the industry as a whole saw a 5.6% decrease.
Key challenges for UPS include low U.S. average daily shipment volumes, which fell year-over-year in Q3 2025, attributed to planned reductions in Amazon shipments. Despite achieving a $1.6 billion acquisition of Andlauer Healthcare Group in November 2025, UPS predicts a 10.6% drop in consolidated volumes for Q4 2025 compared to the previous year. Furthermore, international operating profit fell 12.8% in Q3 due to declining trade volumes and expiring duty exemptions that previously aided cross-border shipments.
UPS is maintaining a robust dividend yield of 6.1% and generated $6.3 billion in free cash flow in 2024, indicating financial strength despite setbacks. The company is scheduled to report its Q4 results on January 27, 2026, as investor sentiment remains cautious amid ongoing revenue challenges.
