PREVIEW: UPS profit seen rising, focus is on margins

FedEx

28/07/2026 10:00

Repeats BUZZ published on Monday with no changes
** United Parcel Service's UPS.N shares down 1.4% on Mon to $113.24 ahead of qtrly results due before the bell Tues, as investors eye progress on its strategy to prioritize higher-margin shipments
** Atlanta, Georgia-based package delivery giant expected to post Q2 adj EPS of $1.66, vs $1.55 a yr ago, and rev up ~3% yr/yr to $21.81 bln, per LSEG data
** In the prior qtr, its profit fell as it scaled back lower-margin deliveries for its top client Amazon AMZN.O to focus on more profitable business
** Stock now up ~14% YTD, outperforming the S&P 500's .SPX 8% rise
** UPS recently traded at 15x forward earnings, in line with its five-yr avg, while rival FedEx FDX.N recently traded at 16x forward P/E
** Of 31 analysts covering UPS, recommendation breakdown on the stock is 15 "strong buy" or "buy", 12 "hold" and 4 "sell"; median PT $115

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))