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- 1 UPS stock is down by 3.70% in pre-market trading, amid failing Teamster negotiations.
- 2 The contract covering over 340,000 workers is expiring on July 31, 2023.
United Parcel Service Inc. (UPS Stock) is down by 2.07% on July 5 and 3.70% on July 6 in pre-market trading, as the negotiations with Teamster have stalled. Both parties are blaming each other for walking out on the parley. The UPS Teamster contract covers over 340,000 part-time and full-time workers and expires on July 31, 2023. This agreement is the most significant private-sector contract in North America.
United Parcel Service Inc. (UPS Stock) – Financial Analysis
With the contract expiring by the end of July, the parties involved have been trying to reach a truce for months. Now, the workers are gearing up for a strike this summer if the negotiations fail. A lot is at stake for both parties and they will each try to gain the best deal possible.
On July 5, 2023, the S&P Index closed with a drop of 0.20%, the Dow Jones Industrial Index fell by 0.38%, and the NASDAQ 100 Index suffered by 0.03%.
The workers’ union argues that workers missed the wage hike during a global pandemic. Additionally, they are trying to leverage the widespread labor shortage to gain a better deal for its members. This scenario puts UPS in a vulnerable position against its rivals like Amazon.com Inc. (NASDAQ: AMZN), up by 0.12% at $130.38, and FedEx Corp. (NYSE: FDX) up by 0.31% at $248.32.
At press time, UPS stock is trading at $179.97 with a drop of 2.07%. Its previous close and open were at $123.77 and $179.37, respectively. The 52-week range is from $154.87 to $209.39, indicating that the current price is close to the lower end of the spectrum. Furthermore, the trailing twelve-month (ttm) price-to-earnings (P/E) ratio comes at 14.63, indicative of the price being undervalued.
Earnings per share (EPS) is $12.30, trailing twelve months. Analysts placed a price target at $191.23 with a 6.3% upside and provided a 2.50 rating for moderate buy. With an average volume of 3.33 million shares, the market cap stands at $145.574 billion. NYSE: UPS’s share price rallied 3.36% in a week and 5.90% in a month. However, it dropped 4.44% in a quarter and 1.27% in a year.
The last earnings were reported on April 25, 2023, where the reported revenue of $22.925 billion failed to beat the estimated figure of $22.989 billion by 0.28%. Moreover, the revenue (ttm) is $98.89 billion. The subsequent earnings are scheduled to be reported on August 8, 2023, with an estimated revenue of $23.107 billion.
The revenue per share (ttm) is $113.92, and the quarterly revenue growth year-over-year (YoY) fell by 6.00%. The profit margin increased by 10.90%, the operating margin by 12.94%, and the gross profit (ttm) came to $25.09 billion. The value of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is reported to be $16.05 billion.
United Parcel Service Inc. (UPS Stock) – Candle Exploration
Just before the last earnings, the UPS share price experienced a gap zone, and the price action has been consolidating in the current zone ever since. The price might break the crucial resistance soon. If so, it is expected to consolidate in the expected range.
However, a descending EMA and dropping RSI, currently at 58.37, do not provide positive indications. Hence, it seems that the price might continue to consolidate in the current region. If the subsequent earnings are negative, the price might drop below S1 at $166.13.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
