United Parcel Service ( UPS ), Inc. shares are down more than 1.4% at $146.60 on the last check Monday, April 1. 

The company recently disclosed winning a significant air cargo contract from the United States Postal Service (USPS). The contract, effective immediately, will boost the existing relationship between the two companies. 

With this agreement, UPS will become the USPS’ primary air cargo provider and move most USPS air cargo in the US.

Last week, UPS provided three-year financial targets, expecting FY26 consolidated revenue of $108 billion–$114 billion, adjusted operating margin above 13%, and free cash flow of $17 billion – $18 billion.

Also, the company sees the U.S. Domestic Package segment adjusted operating margin of at least 12% and the International Package segment adjusted operating margin between 18% and 19%.

Investors can gain exposure to the stock via IShares Trust IShares U.S. Transportation ETF and Direxion Daily Transportation Bull 3X Shares ( TPOR ) .

Now Read: UPS’s Strategic Investment Plan Promises Growth, But This Analyst Questions Market Performance Amid Demand Slowdown

Image: Shutterstock