Here's Why UPS Stock Disappointed Investors Today
(NYSE: UPS) stock was down almost 3% by 3 p.m. ET today. The move comes as higher-than-anticipated inflation data pushed out expectations for an interest rate cut.
Interest rates staying relatively high for longer is bad news for a company like UPS that relies on trade to drive volume growth in its network. Indeed, UPS had a challenging 2023, with delivery volumes coming in less than expected due to sluggish growth caused by higher interest rates putting a brake on the economy.
Moreover, its profit margins come under pressure in a slow economy as consumers and businesses often switch to its less expensive delivery options to save money.
Source Fool.com
United Parcel Service Inc. Stock
€90.34
-1.140%
The stock is one of the favorites of our community with 27 Buy predictions and 4 Sell predictions.
With a target price of 102 € there is a slightly positive potential of 12.91% for United Parcel Service Inc. compared to the current price of 90.34 €.
