D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
United Parcel Service (NYSE:UPS) stock reached a 52-week low, closing at 90.38 USD, with InvestingPro data showing the stock is trading in oversold territory based on RSI indicators. The company maintains a notable 7.22% dividend yield and has increased dividends for 15 consecutive years. This marks a significant downturn for the logistics giant, as the stock has experienced a 30.32% decrease over the past year. Trading at a P/E ratio of 13.4x, InvestingPro analysis suggests the stock is currently undervalued relative to its Fair Value. The decline reflects broader challenges within the delivery and logistics sector, including rising operational costs and shifting consumer demands. UPS’s recent performance underscores the volatility in the market and the ongoing pressures faced by companies in adapting to a rapidly changing economic landscape. Investors will be closely monitoring UPS’s strategies to reverse this trend and regain stability in the coming months. With nine analysts recently revising earnings estimates downward, subscribers to InvestingPro can access 10+ additional exclusive insights and detailed financial analysis to make more informed investment decisions.
In other recent news, UPS reported its second-quarter results, showing a mixed performance that has led to various analyst reactions. The company slightly exceeded revenue expectations but fell short in adjusted operating income, margin, and earnings per share. As a result, UPS has chosen not to provide a full-year 2025 revenue or operating profit outlook, citing macroeconomic uncertainties. Analysts have responded with a series of price target reductions. Oppenheimer lowered its target to $100, maintaining an Outperform rating, while Morgan Stanley (NYSE:MS) reduced its target to $75, keeping an Underweight rating. TD Cowen also adjusted its target to $101, citing uncertainties in the global trade economy. BofA Securities downgraded UPS from Buy to Neutral, setting a new price target of $98 due to concerns over small- to medium-sized business volume and cost reductions. Evercore ISI reduced its target to $97, noting cost concerns despite revenue outperformance. These developments reflect the cautious sentiment surrounding UPS’s financial outlook amid ongoing economic challenges.
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