UPS Stock Faces Mounting Pressure from Rival’s Earnings and Analyst Downgrade

United Parcel Service (UPS) shares are confronting significant headwinds from multiple directions. Beyond its own operational challenges, the company now faces potential spillover effects from the upcoming quarterly results of its chief competitor, FedEx. The logistics giant’s financial performance, due Thursday, is widely viewed as a critical indicator for the entire shipping sector, potentially creating additional downward pressure on UPS stock.

The investment thesis for UPS deteriorated further on September 11, when Bank of America Securities delivered a substantial blow. The firm downgraded UPS shares from “Hold” to “Sell” while simultaneously reducing its price target. Market experts at the institution expressed particular concern about declining shipping volumes amid rising operational expenses.

A key factor in this negative assessment centers on... Read more...