Should you buy UPS stock before 2026?

• UPS’s latest quarterly report showed an improvement in its profitability despite lower package volumes.

• The company is cutting jobs and closing warehouses, as it tries to improve operating margins.

• The stock is down about 23% on the year as I write this, which could indicate a value buy for long-term investors.

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When many people think United Parcel Service (NYSE: UPS)Or UPS, they probably think of a gray truck that drops online orders off their doorstep. And while “old reliable” is a good way to describe its package of services, predictability has not been the way to describe its stock.

UPS is a company going through some big changes, including higher labor costs and changing e-commerce trends, and the share price reflects a good bit of that concern. At the same time, when a stock loses nearly half its value over a five-year period — as it has — investors should wonder if something is structurally awry.

Transportation stocks are down about 24% on the year, as I write this. With so much value wiped out, should you buy UPS before 2026 rolls around, or hold out for more solid results?

The story of UPS’s downfall (and potential revival) can be summed up like this: In the early days of the pandemic, UPS was thriving, as the stay-at-home mandate forced consumers to shop online. The company’s operating margins were wide during that period, driven in large part by increased package volumes.

Then came a reality check: e-commerce spending cooled, while competitors in the delivery space—like frenemy Amazon – Began to take market share from UPS’s old dominance.

As a result, UPS has had to implement a major cost-cutting strategy to help regain some control over its declining margins. In practice, this means job cuts and factory closures, as well as cuts to low-margin deliveries, namely, Amazon packages.

There has been a mixed reaction from investors to this restructuring program, but the results can already be seen. In its latest quarter, the company posted adjusted earnings per share (EPS) of $1.74, well beating analysts’ expectations of $1.30.

Since then, the stock has risen about 8%. Certainly, the company still has a long way to go. But for value investors with a long-term horizon, the cost-cutting work it did in 2025 will begin to pay off in 2026 and beyond, and buying in the final weeks of 2025 will make sense.

Before you buy stock in United Parcel Service, consider this: