United Parcel Service Stock: Bull vs. Bear

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After it decreased more than 33 % since the beginning of the year (to this writing), shares United Part Service (NYSE: UPS) She failed to provide investors in 2025.

But does this disappointing performance mean that the arrow should be completely backward, or is there an opportunity to buy itself? Let’s see how two contributors to fool.com treat this question.

Photo source: Getty Images.

Scott LevinThere is no denial that UPS has a difficult environment at the present time. In the second quarter of 2025, UPS realized a slowdown in manufacturing and customer purchase activity as two workers pressing work locally, while the induction uncertainty affects international works. Not to mention the impact of a decrease in business Amazon.

But the challenges at the present time are not a guarantee of failure to grow in the future.

For all current UPS problems, it is important to remember the company’s leadership position in the logistical services industry. The development of the infrastructure that facilitates complex logistics services does not occur overnight, and the company’s important role in supporting the global supply chain contributes to its competitive advantage.

Taking measures to better put the company to grow in the future, the administration implemented an initiative to save costs, which is expected to lead to a decrease of $ 3.5 billion in expenses due to the restoration of the network and its efficiency initiatives that were re -imagined in 2025. This initiative already pays its fruits. In the second quarter of 2025, UPS reported an operating margin of 8.6 %, an expansion of the 7.7 % operating margin that I mentioned in the first quarter of 2025. Management projects that the operating margin will expand beyond that year, which led to the generation of the company 9 % of the operating margin for the eighth of 2025.

With UPS shares trading at a speed of 7.9 times, the discount on average cash flow for five years is 11.5-investors now has a great opportunity to pay the price of deals to the industry leader.

for me ToxicAlthough UPS has good -term growth prospects for its primary shift towards business with higher and medium -sized margins (SMB), health care delivery, and its objective investments that enhance productivity in the “Future Network”, near to medium expectations are a challenge. The advanced tariff environment generates more questions for many SMB customers who import its products, especially from China.

In addition, there are question marks surrounding the management strategy. This includes spending 5.5 billion dollars to maintain profit distributions and buy stocks worth $ 1 billion in the first half, despite seeing a cash flow of $ 736 million, and the administration is unable to provide instructions for a full year.

While the customs tariff environment remains similar to that in the second quarter, it is difficult to say that the administration’s refusal to update the guidance, in light of the increased uncertainty, is due to the risk of a positive surprise.

Thinking in the long run, there are many reasons to be positive. But at the present time, the company needs to reset expectations, and this may not come before more disappointments in the store. Moreover, there is no guarantee that the administration will take such measures, not the least of which is because CEO Carroll Tommy has even mentioned that she was considering financing debt shares to purchasing shares during the first quarter profit call.

You will definitely see UPS better days, but investors must wait for the appointment first.

Whether you are proud to be a contradictory investor or imagine yourself a value, UPS shares will attract your sensitivities at the present time. Of course, the company’s ability to implement the cost saving initiative is not guaranteed, and there is a fair degree of risk with the purchase of UPS shares today. More investors may want to see the company’s vision that produces improved financial results before clicking the purchase button.

Before purchasing shares in the United Part Service, consider this:

the Motley Adviser is a lie The analyst’s team has just identified what they think 10 best stocks For investors to buy now … united Parcel Service has not been one of them. The ten shares that made the pieces can produce monster revenues in the coming years.

Look at when Netflix This list was submitted on December 17, 2004 … if you invest $ 1,000 at the time of our recommendation, You will have $ 651,345!* Or when Nafidia This list was presented on April 15, 2005 … if you invest $ 1,000 at the time of our recommendation, You will have 1,080,327 dollars!

Now, it is worth noting Stock consultant The average total return is 1058%-Crushing supremis to the market compared to 189 % on the S&P 500 index. Stock consultant.

See the ten stocks »

*The stock consultant dates back from September 15, 2025

Li Samha has no position in any of the mentioned stocks. Scott Levin has no position in any of the mentioned shares. Motley Fool has positions in Amazon and United Parcel Service. Motley Fool has a disclosure policy.

United Part -Service: Bull Vs. Bear originally by motley fool

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2025-09-20 07:01:00

0 4 minutes read