Could UPS Be a Turnaround Stock in 2026?

• A banal that’s cheap, unloved by the market, and trending higher tin go a large winner.

• High-yielding stocks tin connection investors much information than maturation stocks implicit time.

• Companies beneft from being successful an oligopoly.

• 10 stocks we similar amended than United Parcel Service ›

Whether markets commercialized up, down, oregon sideways, there's 1 strategy that stands retired arsenic worthy investigating. This strategy is looking for companies that are operating good but whose banal terms has performed poorly, connected the mentation that the banal volition yet "revert to the mean" and bounce backmost up.

One of the best-known strategies looking for out-of-favor stocks is the "Dogs of the Dow," which invests successful high-yielding dividend stocks successful the Dow Jones Industrial Average. (A falling banal terms drives up yield.)

As The Motley Fool notes: "The thought down this strategy is that investors tin nett from the comparative spot of Dow stocks and the accidental to bargain undervalued components utilizing dividend output arsenic a proxy for valuation. The underlying thesis is that these 'dogs' are often down for short-term reasons, and the market's overreaction has created an accidental for contrarian investors."

Even amended is tweaking the Dogs of the Dow strategy and looking for stocks extracurricular those 30 that are cheap, hated by the market, and -- this is cardinal -- successful an uptrend that tin amended returns adjacent much implicit time.

For instance, United Parcel Service (NYSE: UPS). It was a mediocre performer successful 2025, with a 20% decline. Even worse, shares are down astir 40% implicit the past 5 years.

Business has been declining, pursuing an aboriginal pandemic boost successful shipping that moderated with the extremity of lockdowns. Yet, aft hitting a five-year debased of $82 earlier successful 2025, shares person started trending higher successful caller months, closing the twelvemonth person to $100.

What's happening?

UPS is successful the aboriginal stages of cost-cutting moves. And markets similar what they're proceeding truthful far.

Starting successful aboriginal 2025, UPS launched its turnaround plan, dubbed Efficiency Reimagined. The program includes closing 73 facilities and moving 50% of its bundle measurement distant from Amazon. Additional investments successful artificial quality (AI) and automation allowed UPS to chopped jobs. The extremity goal? To chopped $3.5 cardinal successful yearly costs.

There's been immoderate aboriginal occurrence truthful far, with the company's Q3 2025 earnings, released successful October, showing improvements.

Revenue topped $21.4 billion, a alteration of 3.7% twelvemonth implicit year. However, diluted net per stock came successful 34% higher than expert expectations. And UPS sported a 10% operating margin, up from 7.7% earlier successful the year.