UPS shares have dropped 34% YTD, trading near their 52-week low and underperforming peers like FedEx and GXO Logistics. The recent end of the De Minimis trade exemption has led to customs bottlenecks and customer complaints about discarded shipments. On top of that, UPS's high dividend payout isn't covered by its declining free cash flow, raising questions about dividend sustainability. Slowing demand and weak volumes are hurting revenue, and UPS has avoided providing profit guidance for 2025. While the stock looks cheap by valuation metrics, Zacks rates it as a sell due to these headwinds.