When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
In the most recent trading session, United Parcel Service (UPS) closed at $116.89, indicating a -1.03% shift from the previous trading day.
One of the most intriguing investment propositions in the industrial sector, UPS (UPS -0.15%), is a battleground stock for bulls and bears. Although the company has disappointed investors in recent years, it's making underlying progress in its medium-term strategy, and a turnaround could be under way in 2025.
UPS (UPS 0.50%) recently announced it will reduce its reliance on Amazon (AMZN -0.73%) deliveries moving forward.
United Parcel Service (UPS 0.50%), usually just known by its ticker UPS, has been working through a turnaround. Wall Street hasn't been impressed with its efforts, but in the back half of 2024, the company's performance turned an important corner.
United Parcel Service (UPS) reported earnings a couple of weeks ago, and just as traders did through the last earnings, they sold down into a gap. The stock is now in a range-based formation that we have seen through the last two earnings cycles.
UPS's decision to cut Amazon's volume by 50% by mid-2026 is a strategic move to enhance profitability and focus on higher-margin business. Though short-term revenue will dip, UPS expects significant margin expansion, targeting a 12% U.S. operating margin by Q4 2026. Strategic cost reductions, including facility closures and network resizing, will align UPS's operations with its new business mix.
Here, we assess the investment worthiness of United Parcel Service stock.
UPS (UPS -0.32%) has a fascinating value proposition. Based on management's guidance, the stock is an excellent value, but can UPS meet its leadership's expectations?
At the time of this writing, the stock of United Parcel Service (UPS -0.32%) is down 17.5% since reporting fourth-quarter and full-year 2024 results on Jan. 30.
United Parcel Service (UPS -0.32%) stock fell 14.1% on Jan. 30 after the company reported disappointing fourth-quarter and full-year 2024 results. The stock is now at its lowest level since July 2020.
A Citigroup analyst recently lowered the company's price target on United Parcel Service (UPS -0.31%) stock from $158 to $149 and maintained a buy rating on it. The price target cut isn't great news, but it still represents a 32% premium to the current price, indicating that the recent sell-off is a buying opportunity.