Stock No. 3: United Parcel Service (UPS)
Click here to enter this stock into the Power Gauge right now. And you’ll see the rating is listed as VERY BEARISH. UPS (UPS) has spent the past 117 years building a delivery empire that now stretches across more than 200 countries. On an average day, it handles an incredible 22 million packages. As you’ll recall, delivery companies became huge winners during the COVID-19 pandemic... Folks didn’t want to leave their homes, but they still needed things. They ordered more of just about everything online. And in turn, business surged for companies like UPS... The company’s stock peaked at $232 per share in February 2022. That was an incredible 169% surge from the pandemic low two years earlier. But as the rest of the market surged in 2023, the stock struggled. It fell nearly 10% last year. And even worse for investors, it’s having a rough 2024, too.
UPS recently noted declining volumes in both its domestic and international businesses... For the fourth quarter of 2023, the average number of daily packages fell more than 7% year over year in the U.S. And it was down more than 8% internationally. Unfortunately for UPS, that trend has continued. The company’s profits fell 30% in the second quarter of 2024 compared with last year.
The company earns a “very bearish” overall rating.
After a two-year downtrend, you might be tempted to think UPS is trading at a bargain today. But fundamentally, the company still doesn’t look good... and the Power Gauge sees that.
If you own UPS, get out immediately.
Finding bearish stocks is how I once appeared on CNBC’s Fast Money back in 2014 and warned the public about Priceline.com, just before the stock plummeted. A friend of mine reported seeing a 733% overnight gain on a single play he came across by using my prediction.
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