2024-02-01 08:30:00 ET
Summary
- UPS stock fell nearly 10% this week following disappointing guidance at its recent Q4 earnings release.
- The company is undergoing a transformation, including cutting 12,000 management positions as it looks toward furthering its AI investments.
- UPS anticipates a second-half recovery but faces challenges from labor contracts and competition from FedEx.
- I argue why UPS's long-term uptrend bias remains intact, notwithstanding the recent selloff.
- Investors looking for a dip-buying opportunity have likely found one.
Another earnings, another "disaster," as United Parcel Service ( UPS ) stock has declined nearly 10% this week after its disappointing fourth-quarter earnings scorecard and forward guidance yesterday. UPS also suffered a blowout following its third-quarter earnings release, which I discussed in my previous update in November 2023. However, I also reminded UPS investors that it could be close to a bottom, although the "technical damage to its long-term uptrend is significant." As a result, UPS needs to maintain its upward momentum to recapture the "$154 support zone to encourage momentum buyers to return with conviction."...
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For further details see:
UPS: Avoid The Fear-Driven Steep Plunge