3 Key Reasons the Future Is Looking Up for UPS

• UPS' gross prime is improving.

• Its transportation web is much businesslike than ever.

• The tariff representation for the institution is besides clearer.

• 10 stocks we similar amended than United Parcel Service ›

Every banal tin beryllium similar the proverbial solid of h2o that's either half-empty oregon half-full, depending connected however you look astatine it. United Parcel Services (NYSE: UPS) is nary exception.

If you're a half-empty benignant of person, you'll apt constituent retired that UPS banal is down by a double-digit percent implicit the past 12 months portion the S&P 500 (SNPINDEX: ^GSPC) has soared. You mightiness besides enactment that the bundle transportation elephantine is spending much to wage dividends than it generates successful escaped currency flow, a worrisome sign.

On the different hand, investors with a half-full outlook volition astir apt absorption connected UPS stock's rebound, arsenic shares person jumped much than 25% implicit the past 3 months. They'll besides nary uncertainty stress the company's better-than-expected third-quarter 2025 results.

I'm firmly successful the half-full camp. Here are 3 cardinal reasons wherefore I deliberation the aboriginal is looking up for UPS.

Yes, UPS' gross isn't arsenic precocious arsenic it erstwhile was. The company's gross fell 3.7% twelvemonth implicit twelvemonth successful Q3. However, this diminution was planned arsenic portion of a broader strategy.

UPS sold its Coyote Logistics portion successful the 3rd 4th of 2024, resulting successful a important driblet successful proviso concatenation solutions revenue. It's besides reducing the measurement of shipments for Amazon (NASDAQ: AMZN). Why would the institution deliberately instrumentality these actions? To summation its gross quality.

CEO Carol Tomé noted successful the company's latest net telephone that U.S. gross per portion accrued by 9.8% twelvemonth implicit twelvemonth successful Q3. UPS is besides moving to regenerate the mislaid gross with higher-margin business.

As a lawsuit successful point, the institution closed its acquisition of Andleuer Healthcare Group successful November 2025. This woody helps UPS beforehand toward its extremity of becoming the world's No. 1 supplier of analyzable healthcare logistics.

Higher-quality gross is lone 1 portion of the puzzle for UPS, though. The institution is besides transforming its transportation web to marque it much businesslike than ever.

UPS is successful the midst of the astir extended web reconfiguration successful its history. It has closed 93 buildings frankincense far, including 19 successful Q3. The institution completed a voluntary status programme for galore of its drivers. When UPS reports its full-year and Q4 results, it volition apt denote that astir $3.5 cardinal successful costs were removed successful 2025.