UPS Expects Healthcare Revenue to Double by 2026. Here's What That Means for the High-Yield Dividend Stock
United Parcel Service (NYSE: UPS) has plans to emerge from its current funk, but the stock has been under pressure due to negative growth and an uncertain timeline for its turnaround.
The package delivery giant gave a presentation to analysts on March 26, which included detailed insight into its three-year plan for reaching record revenue and high margins by 2026. But the stock fell over 8% in response to the news. That's likely because growth is slower than expected, and the plan includes further losses in the short term.
However, there is a major silver lining to the company's growth plan -- its healthcare segment. UPS expects 2026 healthcare revenue to total $20 billion, or 18% of total revenue. It's an impressive jump, considering that healthcare was a small part of the business just a few years ago.
Source Fool.com
United Parcel Service Inc. Stock
We see a rather positive sentiment for United Parcel Service Inc. with 13 Buy predictions and 1 Sell predictions.
With a target price of 162 € there is a slightly positive potential of 18.06% for United Parcel Service Inc. compared to the current price of 137.22 €.
