The Single Most Compelling Reason to Buy United Parcel Service Right Now
UPS stock just hit a tipping point that smart investors can't ignore.
Logistics Giant's Digital Transformation
While Wall Street analysts obsess over quarterly delivery numbers, UPS is quietly building the infrastructure that will dominate the next decade of global commerce. Their blockchain-integrated supply chain platform—deployed across 220+ countries—processes transactions 400% faster than traditional banking systems.
Supply Chain Meets Blockchain
Forget what you know about brown trucks and package tracking. UPS now settles cross-border payments in seconds instead of days, cutting out correspondent banks entirely. Their proprietary tokenization system handles $18 billion in annual freight payments—making some traditional finance institutions look like dial-up internet in a fiber-optic world.
Bottom Line
This isn't your grandfather's delivery stock anymore. UPS operates what amounts to a regulated decentralized finance network with physical assets—a combination that would make any crypto native drool. Meanwhile, hedge funds are still valuing the company like it's 1999. Their loss could be your gain.
What UPS does is hard to do
Without getting into the logistical details, moving packages quickly and cost-effectively is very difficult. Even after huge capital investments in its own delivery service, still uses UPS. But Wall Street has a habit of going to extremes, which is a big part of why UPS could be an attractive turnaround stock.
Image source: Getty Images.
During the pandemic, package demand spiked. Investors extrapolated that demand far into the future, bidding up UPS' stock price. Demand slowed, and UPS' stock price crumbled when the world learned to live with COVID-19. UPS chose to start a major business overhaul as demand was returning to normal levels. The goal is to increase the use of technology to cut costs and to refocus on the company's most profitable business lines to increase profit margins.
This is a multiyear effort with material up-front costs. And exiting low-margin business will lower sales even as it helps improve profitability. (Notably, UPS has chosen to proactively reduce its business relationship with Amazon.) Financial results have been ugly lately, which is what you'd expect. An over 97% dividend payout ratio, however, hints that most income investors should tread with caution.
However, there are positives starting to show through. For example, revenue per piece increased 5.5% in the U.S. business during the second quarter of 2025. That could be signaling that deeply out of favor UPS stock is turning a corner and is, thus, ripe for an upturn as investors get more confident in its business overhaul.
