JPMorgan Cautious on United Parcel Service (UPS) Amid Expected Share Pullback

United Parcel Service, Inc. (NYSE:UPS) is 1 of the best undervalued wide moat stocks.

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On January 12, 2026, JPMorgan expert Brian Ossenbeck raised the firm’s terms people connected United Parcel Service, Inc. (NYSE:UPS) from $97.00 to $99.00, portion reiterating a ‘Neutral’ rating. The steadfast noted that overcapacity eased successful the 4th quarter, acknowledgment to manufacture enforcement actions. However, the steadfast says the caller stock rally whitethorn not clasp successful the abbreviated term, with Q1 spot truckload rates expected to weaken seasonally. Accordingly, the steadfast expects investors to fastener successful gains, starring to a short-term pullback amid broader marketplace uncertainty.

Meanwhile, connected January 9, 2026, Bernstein expert David Vernon upgraded United Parcel Service, Inc. (NYSE:UPS) to ‘Outperform’ with a $125.00 terms target, describing dividend concerns arsenic overblown.

The company’s shares declined astir 20% successful 2025, with the dividend output reaching 6% and the payout ratio hitting astir 98%. Still, Vernon remains confident, citing United Parcel Service, Inc. (NYSE:UPS)’s committedness to its dividend portion reshaping operations to absorption connected higher-margin markets and reducing low-margin Amazon volume.

Meanwhile, analysts task EPS maturation of 4% successful 2026 and 11% successful 2027, fixed that the execution goes arsenic per the company’s strategical plan.

United Parcel Service, Inc. (NYSE:UPS) focuses connected providing planetary bundle transportation and proviso concatenation solutions crossed the U.S., international, and proviso concatenation segments.

While we admit the imaginable of UPS arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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