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AMZN
• NeutralAmazon
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/26/2026 | 249.01 |
| Change that session | +0.41% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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UPS shares trade near $100, about 57% below their all-time closing high of $232.11, pushing the dividend yield to roughly 6.5% on a $1.64 quarterly payout. Management expects 2026 adjusted EPS of about $7.22, down about 44% from $12.94 in 2022, after the Amazon volume cut finished in June. In the second quarter, U.S. domestic revenue rose 6% and the segment's adjusted operating margin widened to 8%, helped by cost programs expected to deliver about $3 billion in 2026. Free cash flow is projected at about $5.5 billion against roughly $5.4 billion in dividends, and the stock trades near 13 times expected 2027 earnings versus about 19 times for the S&P 500. The author sees value for income investors willing to wait for the turnaround, though the Oct. 27 report and thin dividend coverage remain risks.
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UPS shares rose 5% to $105.01 in the afternoon session after the company reported third-quarter 2026 adjusted EPS of $1.69 and revenue of $22.85 billion, up 6.7% year over year, both above analyst expectations. UPS raised its full-year outlook, now expecting revenue of about $92.6 billion, and guided to fourth-quarter 2026 revenue of about $25.7 billion and adjusted operating profit of about $3.3 billion. The U.S. Domestic segment's operating margin rose 60 basis points to 7%, small and midsize business customers made up a record 35.1% of U.S. volume, and the International segment returned to year-over-year operating profit growth. Supply chain profit fell from a year earlier even as revenue grew, and a goodwill impairment tied to the segment weighed on reported results. The company expects its Efficiency Reimagined program to deliver nearly $3 billion in benefits this year, while FedEx (FDX) rose 2% to $306.15 and C.H. Robinson (CHRW) gained 0.6%.
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