Recent news indicates potential challenges for UPS. Barclays has highlighted UPS as one of the stocks with significant downside risks, citing concerns over lower post-COVID package volumes and higher labor costs. Additionally, the implementation of new tariffs on imports from Canada and Mexico has led to a surge in cross-border trucking rates, but experts anticipate a decline in trucking volumes post-implementation, which could negatively impact UPS's revenue.
The stock is currently trading near its Fibonacci pivot level of 118.67, with resistance at 120.89 and support at 116.46.
The stock closed at 121.62 on March 7, with a slight gain of 0.93% during regular market hours.
Based on the bearish technical indicators and negative news sentiment, UPS is expected to face selling pressure in the next trading week. The stock is likely to test its support level at 116.46.
Predicted Price: $116.50
Recommendation: Sell
The price of UPS is predicted to go up 11.6%, based on the high correlation periods with NSP. The similarity of these two price pattern on the periods is 98.7%.
UPS
NSP
Year
UPS Price Forecast($)
Potential Return(%)
2025
124.040
0.200
2026
135.000
13.420
2027
150.000
26.020
2028
145.000
21.820
2029
180.000
51.220
2030
200.000
68.020
Despite near-term normalization, UPS' US ground and express package delivery operations should enjoy positive longer-term tailwinds from e-commerce growth.
UPS' massive package sortation footprint, immense air and delivery fleet, and global operations knit together a presence that's extraordinarily difficult to replicate.
On top of superior parcel density, UPS uses many of the same assets to handle both express and ground shipments, contributing to industry-leading operating margins.
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