UPS (UPS) Stock Forecast & Price Target

United Parcel Service (UPS) is poised for a positive financial outlook, as the company's international volume growth has witnessed substantial increases, particularly with a reported 20% growth in volumes from China to the rest of the world and an additional 3.9% uplift in average daily volume for its International Package segment. Moreover, revenue per piece improved nearly 7% in the first half of the year, indicating effective strategies in customer and product mix, which are likely to enhance long-term margins. The International Package segment generated approximately $4.5 billion in revenue during the quarter, reflecting a year-over-year increase of 2.6%, further underscoring the company's strong international performance.

United Parcel Service's adjusted operating profits have declined by 13.1% to $212 million, indicating significant margin pressures, particularly within its forwarding services. The supply chain solutions segment experienced a substantial 18.3% year-over-year revenue decline to approximately $2.7 billion, exacerbated by the upcoming divestiture of Coyote. Additionally, the Ground Saver volume, which is considered the most cost-sensitive segment, fell 23% to its lowest level in two years, highlighting a broader deterioration in demand amidst external economic pressures.