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JPMorgan Cautious on United Parcel Service (UPS) Amid Expected Share Pullback

United Parcel Service, Inc. (NYSE:UPS) is one of the best undervalued wide moat stocks.

Pixabay/Public Domain

On January 12, 2026, JPMorgan analyst Brian Ossenbeck raised the firm’s price target on United Parcel Service, Inc. (NYSE:UPS) from $97.00 to $99.00, while reiterating a ‘Neutral’ rating. The firm noted that overcapacity eased in the fourth quarter, thanks to industry enforcement actions. However, the firm says the recent share rally may not hold in the short term, with Q1 spot truckload rates expected to weaken seasonally. Accordingly, the firm expects investors to lock in gains, leading to a short-term pullback amid broader market uncertainty.

Meanwhile, on January 9, 2026, Bernstein analyst David Vernon upgraded United Parcel Service, Inc. (NYSE:UPS) to ‘Outperform’ with a $125.00 price target, describing dividend concerns as overblown.

The company’s shares declined roughly 20% in 2025, with the dividend yield reaching 6% and the payout ratio hitting roughly 98%. Still, Vernon remains confident, citing United Parcel Service, Inc. (NYSE:UPS)’s commitment to its dividend while reshaping operations to focus on higher-margin markets and reducing low-margin Amazon volume.

Meanwhile, analysts project EPS growth of 4% in 2026 and 11% in 2027, given that the execution goes as per the company’s strategic plan.

United Parcel Service, Inc. (NYSE:UPS) focuses on providing global package delivery and supply chain solutions across the U.S., international, and supply chain segments.

While we acknowledge the potential of UPS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UPS and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 7 Best Rising Tech Stocks to Buy Now and 12 Best Multibagger Stocks to Buy Heading into 2026.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

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We alerted our subscribers, and BTI returned 90% in just 16 months.

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Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

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