From NASDAQ: 2024-03-26 23:32:55

UPS stock is currently trading at $156 per share, 32% below its peak level in February 2022. The stock underperformed the S&P 500 due to a decline in parcel delivery volumes and weak consumer spending amid higher inflation. UPS’ fundamentals saw lower revenues and operating margins in recent years.

Looking at the long term, UPS stock has seen little change, with returns of 27% in 2021, -19% in 2022, and -10% in 2023. The Trefis High Quality Portfolio outperformed the S&P 500 each year, providing better returns with less risk. UPS’ Valuation is estimated at $156 per share.

During the 2022 inflation shock, UPS stock experienced turbulence in the market conditions, leading to a comparison with the stock’s performance during the 2008 recession. UPS’ total debt remained around $22 billion, with a decrease in cash to $8.2 billion. The company generated $10.2 billion in cash flows from operations in the last twelve months.

Despite uncertainties in the macroeconomic environment, including high oil prices and elevated interest rates, UPS stock is currently fully priced. The company may face continued pressure on operating margins with a weak consumer spending environment. Investors are advised to wait for a dip before entering UPS stock.

Trefis’ analysis shows that UPS stock could see gains once fears of a recession are allayed, but for now, it is fully priced. With near-term concerns such as higher inflation and weak consumer spending, investors may benefit from waiting for a dip to enter UPS stock. UPS’ peers should also be considered when evaluating the stock’s performance.



Read more at NASDAQ: Will UPS Stock Recover To Its Pre-Inflation Shock High of $230?