tl;dr
It's been a difficult 24 hours for UPS (NYSE:UPS) as the losses continue to mount for the Atlanta-based company after underwhelming Q4 results were followed by plans to eliminate 12K jobs. Since Monday’s close, the stock has fallen by 10% setting an eleven-week low on Wednesday, and limping towards ...
It's been a difficult 24 hours for UPS (NYSE:UPS) as the losses continue to mount for the Atlanta-based company after underwhelming Q4 results were followed by plans to eliminate 12K jobs. Since Monday’s close, the stock has fallen by 10% setting an eleven-week low on Wednesday, and limping towards a fouth day in the red. The parcel delivery company said revenue was down 7.8% year-over-year as average daily volume and domestic package revenue fell. With an expensive new labor agreement, and competition from Amazon (AMZN), UPS gave unimpressive revenue guidance for this year. The fallout undermined the share price and resulted in a series of negative actions from Wall Street analysts with JPMorgan, BofA Securities, Morgan Stanley, and Goldman Sachs all cutting their price targets, among others. Argus downgraded UPS to Hold from Buy and called the company’s outlook for earnings and dividend growth over the next few quarters “tepid at best.” “The company has disappointed on EPS in recent quarters, and the outlook is for slow growth at best in 2024,” Argus analyst John Eade said. And Morgan Stanley doesn’t expect the volume outlook to improve either as management forecasts market growth ex-Amazon (AMZN) of just 1% in 2024. It will be “challenging to grow revenues faster than inflation from here,” Morgan Stanley analyst Ravi Shanker said in a research note. The new agreement with the Teamsters union is another anchor that could weigh down UPS’s profitability. The contract, which netted “overwhelmingly lucrative” wage hikes for all workers, was “undoubtedly” a cost hit, Morgan’s Shanker says, adding that the job cuts are seen as a short-term action which signals tough market conditions. Morgan Stanley dropped its price target for UPS to $95, a 34% discount to Tuesday’s close. UPS shares were down 1.7% on Wednesday.
More about United Parcel Service Inc
United Parcel Service Inc is a well-established company in the energy and transportation sector, specifically in the trucking and courier services industry. With a market capitalization of $134.62 billion and a current stock price of $166.63, the company has shown a steady performance. The stock has a 52-week range of $108.07 to $166.63, indicating a positive trend in stock performance. However, the Relative Strength Index (RSI) of 15.99 suggests that the stock may be oversold, and the negative values for both the price change and percentage change indicate a bearish sentiment in the market. It is important to consider potential risks and uncertainties associated with this analysis, as past market behavior is not always a reliable indicator of future performance.
More about Amazon.com Inc
Amazon.com Inc, a multinational technology company in the retail-catalog and mail-order industry, has a market capitalization of $1.64 trillion and a stock price of $3.25. Its stock performance has seen a 1.91% increase with a 53.95 P/E ratio. Market sentiment is currently bullish with a Relative Strength Index (RSI) of 53.95, indicating a potential for further upward movement. However, it's important to note that past performance is not always indicative of future results, and there are potential risks and uncertainties associated with investing in this stock.
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