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
€119.28
0.740%
With 20 Buy predictions and only 1 Sell predictions the community sentiment for the stock is positive.
As a result the target price of 147 € shows a positive potential of 23.24% compared to the current price of 119.28 € for United Parcel Service Inc..
