Can Ups Stock Outperform Market

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Can Ups Stock Outperform Market

Can UPS Stock Outperform The Market?

A question that's on the mind of most investors is, can UPS outperform the market in the next 5 years? At least, the company itself is hopeful that the next 5 years will be somewhat better than the last five.

A quick look at the share price of UPS shows it is down by 32% in the last 5 years. But in 2026, things are starting to look good, and even the stock price has made a comeback from its multi-month lows.

UPS Has 6.1% Dividend Yield

Also, a group of 4 analysts has upgraded their price targets for the UPS share. And when we consider the fact that UPS offers a 6.1% dividend yield, there's a very strong chance that it might just make a comeback.

But before we look at where UPS stock would be in the future, let's take a look at the past. The UPS rose to fame during COVID-19 when almost everyone turned to home delivery and e-commerce.

With so many people using UPS, it was only natural for the revenue to jump during 2020 and 2021. But it went down when Amazon no longer needed to rely on UPS as much as it used to.

After that, the SurePost program was also undone, followed by a union strike in 2023. The agreement, which ended the strike, shows that UPS will have to face high labor costs till 2028.

However, analysts think that the core business of UPS has started to stabilize despite the rough climate. Also, the UPS is likely to return to earnings growth, which is a big thing considering the performance of the last few years.

The current share price of UPS shows around 15 times its projected earnings. But it will only work if UPS can manage to improve its bottom line.

However, it is better not to wait for UPS stock to make a comeback this year. After all, there are so many better stocks in the US market, and it doesn't make sense to waste the next 5 years for UPS to make a comeback.

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