UPS Stock Analysis — United Parcel Service
Sector: Logistics
AI Verdict
UPS is cheap for the growth you're getting at 14.1x forward earnings, but the scale moat only pays off if the company actually hits the double-digit EPS growth analysts expect.
Competitive Moat
UPS operates a global logistics and package delivery network that would take decades and billions to replicate, with entrenched relationships across e-commerce, retail, and industrial clients. Its scale enables cost advantages and route density that smaller rivals cannot match.
Summary
UPS trades at 14.1x next year's earnings with analysts expecting a 27.1% jump in EPS, putting it in focus as a value play with a scale moat.
Where It Stands
UPS is up 7.60% over the past year, trades at 14.1x forward earnings versus the industrials median of 20x, and its RSI of 65.7 signals elevated risk of a near-term pullback.
Key Metrics
- RSI: 65.7 — Near Overbought
- Trailing P/E: 17.9x
- Forward P/E: 14.1x
- PEG Ratio: 0.64
- Earnings Growth: +0.3%
- Revenue Growth: -0.0%
- Market Cap: $95.9B
- Dividend Yield: 0.06%
- 1-Year Return: 7.60%
- 52-Week High: $122.41
- 52-Week Low: $82.00
Analyst Consensus
17 Buy · 12 Hold · 4 Sell (33 analysts)
Bull Case
With forward EPS growth forecast at 27.1% and a forward P/E of 14.1x, you're getting growth at a discount to the sector median.
Bear Case
An RSI of 65.7 means a pullback could easily erase several months of the modest 7.60% one-year gain if sentiment turns.
Catalyst to Watch
Watch for quarterly earnings reports—if UPS delivers on the 27.1% EPS growth, the current valuation could quickly look cheap.