Why UPS Stock Failed to Deliver in April

In April, United Parcel Service (NYSE: UPS) reported quarterly results that came in much better than what analysts had expected. But that was not enough to get investors on board. Shares of UPS lost 16.1% during the month, according to data from S&P Global Market Intelligence, on fears that a slowing macro environment would eat into shipping demand in the second half of the year.

Long before UPS's April 26 earnings report, Wall Street was getting nervous about the shares. Transportation stocks tend to be cyclical, doing best when the economy is strong. A combination of higher energy costs, which mean higher expenses at UPS and could lead to a slowdown in economic activity, coupled with concerns the Federal Reserve would try to muzzle the economy to keep inflation tame, had investors on the defensive when it comes to UPS.

Image source: United Parcel Service.

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Source Fool.com