UPS Shares Climb 0.19% Despite 20.25% Drop in Trading Volume Ranks Among Top Performers Amid Revenue Struggles and Amazon Shift

On August 29, 2025, United (UPS) traded at a volume of $0.60 billion, reflecting a 20.25% decline from the previous day’s trading activity. The stock closed with a 0.19% gain, placing it among the day’s performers in the U.S. equity market.

UPS continues to face revenue challenges amid a combination of economic headwinds, including geopolitical uncertainties and persistently high inflation, which have dampened consumer sentiment and demand. The company reported a 1.7% year-over-year revenue decline in the first half of 2025, driven by a 3.8% drop in consolidated average daily package volumes. Management attributed this trend to broader economic slowdowns and the strategic decision to reduce business with Amazon, which is expected to cut the e-commerce giant’s shipping volume by over 50% by mid-2026. CEO Carol Tome emphasized that Amazon was not UPS’s most profitable client, underscoring the company’s focus on optimizing its customer mix despite near-term volume pressures.

Macroeconomic uncertainties, including the timing of future interest rate cuts and potential tariff adjustments, have added volatility to UPS’s outlook. The company has yet to provide revenue or operating profit guidance for 2025, citing ongoing market unpredictability. Meanwhile, industry peers like FedEx are implementing aggressive cost-cutting measures, such as workforce reductions and operational streamlining, to counter weak demand. UPS’s own cost-reduction efforts, however, have not yet offset the drag from declining shipment volumes.

Valuation metrics suggest mixed signals for investors. UPS trades at a forward P/E ratio of 12.28X, in line with industrial sector averages. Analyst estimates for 2025 and 2026 earnings have been revised downward over the past two months, reflecting cautious expectations. The stock currently holds a Zacks Rank of #4 (Sell), indicating bearish sentiment among analysts based on earnings revisions and fundamental trends.