UPS Under $100: Your Last Chance to Buy?
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By Thomas Niel – Dec 19, 2025 at 6:30PM ESTKey PointsUPS surged higher after a well-received earnings release in October, and has continued to climb higher throughout the holiday season.Now trading at around $100 per share, you may be wondering whether now is the time to buy.While investor optimism about UPS has been on the rise lately, concerns about its growth prospects and the sustainability of its high dividend could renew as 2026 unfolds.These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: UPSUnited Parcel ServiceMarket Cap$87BToday's Changeangle-down(-0.16%) $0.16Current Price$101.92Price as of December 19, 2025 at 4:00 PM ETShares in the package delivery giant may be surging higher this holiday season, but renewed worries could emerge next year.The holiday shopping season is a busy time for package delivery companies like United Parcel Service (UPS 0.16%). This may be contributing to the stock's recent strong performance. UPS shares rallied after a strong earnings release in October and have continued to rally since then. However, before you rush out and buy this hot stock as it crosses the $100-per-share mark, you may want to consider the following. ExpandNYSE: UPSUnited Parcel ServiceToday's Change(-0.16%) $-0.16Current Price$101.92Key Data PointsMarket Cap$87BDay's Range$100.12 - $102.1952wk Range$82.00 - $136.99Volume17MAvg Vol7.3MGross Margin18.48%Dividend Yield6.43% UPS has become a popular dividend and turnaround play Many factors affected UPS's operating performance in recent years. These include the post-pandemic drop in e-commerce volumes and higher labor costs, as well as the impact of competition, including competition from Amazon, one of its largest customers. Image source: Getty Images. However, since the earnings release, future potential, not past challenges, has been top of mind. With UPS delivering an earnings beat during Q3, not to mention a reiteration of its cost-cutting plans, the market expects improved results to continue. That's good news for two reasons. First, stronger earnings should lessen concerns about dividend sustainability. UPS has a high forward dividend yield of 6.6%, but the stock's payout ratio comes in at a staggering 87%. There have been worries about a possible dividend cut. Second, improved profitability and a return to positive revenue growth could help to further bridge the valuation gap between UPS and its competitor, FedEx. UPS currently trades for 13.5 times forward earnings, while FedEx trades at a slightly higher forward P/E of 16.5.Advertisement Why it may not be too late Having said all of this, only time will tell whether UPS continues to climb. Sell-side analysts only expect earnings to rise 4.2% in 2026. While the company beat expectations last quarter, it's unclear whether this will happen again for this quarter. Come late January, when UPS reports its next earnings, the results could fall short of expectations, possibly leading to further volatility in the shares. UPS's turnaround will take years, not quarters, to take shape. Chances are, you probably haven't missed your last chance to buy this stock for under $100 per share.Read NextDec 14, 2025 •By Reuben Gregg Brewer3 Dividend Stocks to Hold for the Next 10 YearsDec 10, 2025 •By David Jagielski, CPA3 Absurdly Cheap Stocks That Look Like Steals Right NowDec 8, 2025 •By Daniel FoelberAll It Takes Is $4,000 Invested in This High-Yield Dividend Stock to Generate $275 in Passive Income in 2026Dec 2, 2025 •By Lee SamahaCan UPS Stock Beat the Market?Nov 29, 2025 •By Steven PorrelloShould You Buy UPS Stock Before 2026?Nov 28, 2025 •By Matt DiLalloBlack Friday Stock Sale: 3 Dirt Cheap Stocks to Buy While They're On Sale.About the AuthorThomas Niel is a contributing Analyst at The Motley Fool, covering publicly traded companies in the consumer goods and technology sectors. Prior to the Motley Fool, Thomas was a contributing Analyst for several online investing publications, including InvestorPlace, Seeking Alpha, and TipRanks. He also has past career experience in the accounting and government contracting industries. He holds a B.B.A. in Accounting from Marymount University. Thomas won his school's geography bee in the fifth grade, but retired from the professional geography bee circuit shortly thereafter.TMFThomasNielStocks MentionedUnited Parcel ServiceNYSE: UPS$101.92 (0.00%) $0.16*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement