UPS Stock Slumps to Five-Year Low Amid Market Contrast
United Parcel Service (UPS) shares have plunged over 30% year-to-date, hitting a five-year low as of October 8th. This decline starkly contrasts with the S&P 500's 14.9% gain and the industrial sector's 19.2% advance. Only one stock in the industrial sector has underperformed UPS this year.
The logistics giant, founded in 1907, has weathered numerous economic storms but now sees its market value shrink to $73 billion. Despite the downturn, UPS maintains a 7.6% dividend yield—raised for 16 consecutive years—signaling management's commitment to shareholder returns.
At a forward P/E of 13.3x and P/S of 0.8x, some investors question whether UPS represents a value opportunity. The stock remains a Core holding in numerous industrial and logistics-focused funds, but its weight in these portfolios has diminished alongside its price.
