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United Parcel Service (UPS) has seen a nearly 30% drop in its stock over the past year, underperforming against the S&P 500’s 12% gain. The company’s recent strategic shift to minimize lower-margin deliveries for Amazon aims to improve profitability. However, incoming tariffs may negatively affect UPS by increasing customer costs and potentially decreasing international shipping volumes.
As of June 6, 2025, UPS stock is trading around $98, with a price-to-sales (P/S) ratio of 0.9 compared to 3.0 for the S&P 500, and a price-to-earnings (P/E) ratio of 14.1 versus 26.4 for the S&P 500. Recent revenue figures indicate a marginal decline of 2.6% per year over the last three years, while total revenues increased from $90 billion to $91 billion in the past year. Operating income stands at $8.5 billion, reflecting a 9.4% operating margin.
UPS’s debt is at $26 billion against a market cap of $84 billion, leading to a moderate debt-to-equity ratio of 31.1%. The company’s performance through past downturns indicates it has demonstrated slightly better resilience than the S&P 500. Overall, UPS’s valuation is estimated at $124 per share, suggesting over 25% upside potential.
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