With a market cap of $85.3 billion, United Parcel Service, Inc. (UPS) is a package delivery and logistics provider that offers transportation and delivery services. Founded in 1907, the Atlanta, Georgia-based company operates through two segments, U.S. Domestic Package and International Package.

Shares of the delivery company have underperformed the broader market over the past year and in 2025. UPS stock has tanked 32.6% over the past 52 weeks and 21% on a YTD basis. In comparison, the S&P 500 Index ($SPX) has returned 12.3% over the past year and marginally in 2025.

Narrowing the focus, UPS has also underperformed the iShares Transportation Average ETF’s (IYT) 2.1% surge over the past 52 weeks and its marginal rise this year.

UPS stock declined marginally following the release of its Q1 earnings on Apr. 29. The company reported revenue of $21.5 billion, flat year-over-year and exceeded the analyst estimates. Its operating margin came in at 7.7%, also in line with the previous year’s value. UPS’ adjusted EPS came in at $1.49 and surpassed the consensus estimates by 4.9%.

For the current year ending in December, analysts expect UPS’ EPS to decline 6.6% year over year to $7.21. Moreover, the company has surpassed analysts’ consensus estimates in three of the past four quarters, while only missing on one occasion.

Among the 28 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 16 “Strong Buy” ratings, 10 “Holds,” and two “Strong Sells.”

The configuration is slightly less bullish than a month ago, when 17 analysts recommended a “Strong Buy.”

On Apr. 30, Loop Capital Markets analyst Rick Paterson maintained a “Hold” rating on United Parcel and lowered its price target from $115 to $105.

UPS’ mean price target of $117.33 indicates a premium of 17.7% from the current market prices. Its Street-high target of $155 suggests a robust 55.5% upside potential from current price levels.