Amazon Shipment Slowdown Makes UPS Worst S&P 500 Stock, BofA Cuts Target
UPS sits 15% above its 52-week low of $82.
Summary
UPS shares fell 4% to $95.04 on Monday, making it the worst performer in the S&P 500, after BofA cut its price target to $108 from $115 and lowered FY EPS estimates to $7.10 from $7.25, citing a sharper reduction in domestic shipping volumes and a large decline in Amazon shipments. This reverses the optimism from July when UPS raised its full-year guidance to $7.22 EPS and $91.2B revenue. The stock is now down 4% year-to-date and 59% from its 2022 high. The analyst cut suggests Amazon's volume pullback is more severe than previously expected, directly pressuring UPS's revenue outlook. Watch for UPS's next earnings report to confirm whether the Amazon decline is accelerating.
At the time of this announcement, UPS was trading at $94.43 on NYSE in the Trade & Services sector, with a market capitalization of approximately $80.3B. The 52-week trading range was $82.00 to $122.41. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.