Ups Stock Forecast

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Ups Stock Forecast

Ups Stock Forecast For Next 3 Years

The management of UPS has recently announced its plan for 2026, which involves increasing investments in various markets.

This involves the SMBs, healthcare, and technologies that enhance productivity. The UPS management claims that it is building something called 'the network of the future'.

Ups Plans To Boost Productivity

The company is making these investments to lower the cost per package and to increase productivity. In addition, it will also allow them to close the facilities that are unproductive and move the volume towards new & modern facilities.

This year, the company also announced that it will be reducing the Amazon deliveries by almost 50%. The key reason is that such deliverers have low profit margins or even negative margins in some cases.

Overall, it seems that UPS is successfully going through the challenging period. In addition, the end demand is also increasing, which will allow UPS to increase its revenue in the coming quarters.

In addition, UPS is also working on many different programs for cost reductions. Now, that's yet another plus point and shows that the UPS management is heading in the right direction.

However, there are also some risks, and a major one is that tariff disputes will make things tough for UPS. It could also affect their profitability and even force them to cut the dividend.

From the looks of it, it seems that UPS will have to actually cut the dividend. Now, that's a smart play as it can use that extra money as an investment for transforming the business for the new age.

So, if UPS manages to follow through with its plan, it will be in a much better place than it was a few years ago. Now, cutting back on dividends might affect the UPS stock price in the short to medium term.

But in the long term, the UPS stock price is expected to recover and even turn green. So yeah, the UPS stock will be in a much better place in the next 3 years.

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