Here's Why Shares in UPS Slumped This Week
Shares in (NYSE: UPS) declined by 10.6% in the week to Friday morning, according to data provided by S&P Global Market Intelligence. There are no prizes for guessing why. The company's fourth-quarter earnings report left investors feeling underwhelmed on Tuesday after management gave lackluster guidance for 2024 and warned investors it's likely to get worse before it gets better.
It's fair to say last year wasn't an outstanding one for UPS. The company got hit with weaker-than-expected end demand because rising interest rates put a brake on the economy. Not only does this negatively impact the absolute level of demand, it also causes customers to shift to lower-cost alternatives. For example, volume in its lower-cost ground service (with an average revenue per piece of $11.03 in 2023) only declined 6.9% in 2023 compared to a whopping 21.2% fall in volume for its more expensive deferred service ($16.38).
If a weakening economy wasn't enough, UPS lost delivery volumes as protracted labor negotiations caused customers to divert deliveries to other networks for fear of strike action.
Source Fool.com
United Parcel Service Inc. Stock
With 13 Buy predictions and only 1 Sell predictions the community sentiment for the stock is positive.
As a result the target price of 162 € shows a slightly positive potential of 19.01% compared to the current price of 136.12 € for United Parcel Service Inc..
