- UPS
- MP
Artificial intelligence (AI) is all the rage on Wall Street, leaving more mundane “real-world” businesses in its high-tech shadow. But investors ignore boring businesses at their own peril today, amid growing concerns that AI has turned into a bubble that could soon burst. Even if it does, the packages that United Parcel Service (NYSE: UPS) delivers will still need to be delivered. And the rare-earth metals that MP Materials (NYSE: MP) mines and processes will still be in high demand. Both are worth a second look if you are ready to put money to work in an area other than AI.
1. UPS is living up to its promises
United Parcel Service, commonly known as UPS, is an industrial turnaround story. Over time, the company’s operations got a bit unwieldy, and it found itself operating in too many low-margin businesses. It decided to take a proactive approach, slimming down and investing in technology and infrastructure to improve its operations. At the same time, it moved to exit less desirable businesses and reduce exposure to low-margin customers.
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Think about that for a second, and you’ll see the problem. UPS was spending on its business at the same exact time it was reducing revenues. The last few years of earnings reports have been pretty ugly reading. But the second half of 2026 was billed as the inflection point. And it looks like management is living up to that promise, with third-quarter 2026 revenues up 6.7% year over year. In fact, UPS even increased its full-year guidance for revenues, earnings, and free cash flow.
To be fair, there’s still more work to be done. But UPS’ progress is notable, and the bursting of the AI bubble isn’t likely to derail it. Delivering packages may benefit from using AI, but AI isn’t the main driver of the business. And while you wait for more progress on the turnaround, you can collect the stock’s well-above-market 6% yield. And, if that lofty yield has you worried about a cut, even a 50% reduction would still leave you with a large income stream.
2. MP Materials serves a vital purpose
MP Materials is building a rare-earth metals business that operates in an economically and politically stable region. And that business is starting to ramp up, with production from the company’s new mine feeding into its processing facilities. In the second quarter of 2026, the company’s revenues grew nearly 90%.
