What's Going On With UPS Stock Wednesday?
Portfolio Pulse from Adam Eckert
UPS stock is trading lower in sympathy with FedEx after FedEx reported weaker-than-expected quarterly results. FedEx's revenue and EPS both missed estimates, and the company forecasted a low-single-digit percentage decline in full-year 2024 revenue. Analysts have also lowered price targets for FedEx, which is contributing to the downward pressure on both FedEx and UPS stocks.
December 20, 2023 | 2:48 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
FedEx reported disappointing quarterly results, missing revenue and EPS estimates, and provided a weaker revenue forecast for 2024, leading to a decline in its stock price and lowered analyst price targets.
FedEx's stock is directly impacted by its own earnings report and future revenue forecast. The miss on both top and bottom lines, coupled with a lower-than-expected outlook for 2024, is a strong negative signal for investors, leading to a decrease in stock price. The subsequent lowering of price targets by analysts reinforces the negative sentiment and suggests a bearish short-term outlook for FedEx's stock.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
UPS shares are down due to FedEx's poor quarterly performance and lowered future revenue expectations, which has a negative impact on investor sentiment towards the shipping industry.
As UPS is directly competing with FedEx, negative news for FedEx often has a sympathetic impact on UPS due to perceived industry-wide challenges. The lowered price targets for FedEx by analysts suggest a bearish outlook for the sector, which can lead to a decrease in UPS's stock price in the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80