UPS Volume Outlook Improves Modestly in Bank of America Update

United Parcel Service, Inc. (NYSE:UPS) is included among the Best Stocks for a Dividend Achievers List.

On December 18, Bank of America analyst Ken Hoexter raised the firm’s price target on United Parcel Service, Inc. (NYSE:UPS) to $99 from $95. The firm kept an Underperform rating on the shares.UPS told investors that peak season unfolded largely as expected. The company now targets US domestic average daily package volumes to decline about 11% year over year in the fourth quarter. That compares with Bank of America’s earlier estimate of a 13% drop. The firm raised its Q4 EPS estimate by 1%, while leaving its fiscal 2026 EPS forecast unchanged at $7.10. It also slightly increased the valuation multiple applied to that estimate.

According to Bloomberg, United Parcel Service, Inc. (NYSE:UPS) plans to invest about $120 million in 400 robots designed to unload trucks. The move adds detail to the company’s broader $9 billion automation strategy, which aims to lift margins by reducing labor costs.

Truck and container unloading is still largely manual across the industry. It remains a persistent bottleneck in warehouse operations. UPS’s order draws attention to Pickle Robot Co., a Massachusetts-based startup that already works with UPS. The company has raised roughly $97 million since its founding in 2018, according to PitchBook.

Pickle’s system uses a robotic arm mounted on a mobile base. The robot drives into shipping containers, lifts boxes weighing up to 50 pounds using suction, and places them onto conveyor belts. People familiar with the matter said United Parcel Service, Inc. (NYSE:UPS) plans to deploy the robots across multiple facilities starting in the second half of 2026 and continuing into 2027.

Automation has been a long-term priority for UPS. In 2024, the company announced a four-year, $9 billion investment plan covering more than 60 U.S. facilities. The goal is to generate $3 billion in cost savings by 2028.

United Parcel Service, Inc. (NYSE:UPS) operates one of the world’s largest shipping and supply chain networks, serving customers across e-commerce, healthcare, and industrial markets.

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