Investors have taken a hit on both United Parcel Service (NYSE:UPS) and Hormel Food (NYSE:HRL), with their stock prices plummeting over 55% since early 2022. For those who don’t mind the idea of a potential turnaround, this might be an opportunity worth considering. So, let’s explore some of the brighter aspects related to UPS and Hormel.
UPS has been restructuring quite a bit. In 2025, they shut down 93 facilities and implemented automation in 57 sites. They revamped their distribution network, managing to save around $3.5 billion in the process. One significant move was reducing their dependency on Amazon (NASDAQ:AMZN) customers—those who generate high sales but yield low profits.
Regarding profitability, 2025 was a tough year for sales, yet there’s a silver lining: in the U.S. market, revenue per unit jumped by 7.1%. This shows that their efforts to turn things around might just be taking root. Management has hinted that 2026 could be a pivotal year, expecting better results in the latter half compared to the former.
On top of that, UPS boasts a solid yield of 6.9%, which they seem ready to maintain. For those looking at long-term holds, it offers critical services that could make it a worthwhile stock to keep in a portfolio for years.
Switching gears to Hormel, 2025 was notable for the boost in organic sales—marking the fifth consecutive quarter of increases. Furthermore, they’re reworking their business model, especially by divesting their commodity-focused turkey segment. The transition has been bumpy, prompting the appointment of a new CEO, but positive changes are starting to emerge.
Hormel is also optimistic, expecting adjusted earnings to rise by 4% to 10% in fiscal 2026. The company is nearly done refocusing on value-added products. Their protein-heavy portfolio is positioned to benefit from changing consumption patterns driven by GLP-1 medications.
With more than 50 consecutive years of annual dividend increases, this Dividend King presents a strong option for income-focused investors, offering a yield of 5%, notably higher than the S&P 500’s 1.1%.
Given the significant declines in stock prices for both UPS and Hormel, investor confidence might not be at its peak. However, a deeper dive shows that there are positives creeping in. There’s a chance that these less popular S&P 500 stocks could be a great buy now, before their resurgence catches the broader market’s attention.
