Bear Of The Day: Ups

In every market, there are winners and there are losers. When the stock market is retreating the way it has since the start of the month, it can feel like the losers are over-powering everything. You shouldn’t be discouraged by this. In actuality, it’s typically a great time to add to your positions. Just do go out there and add blindly. Look for stocks with strong earnings trends to add, and maybe avoid those where earnings are moving in the wrong direction, to the downside.

One stock that’s seen its recent earnings move in the wrong direction is today’s Bear of the Day. I’m talking about Zacks Rank #5 (Strong Sell) United Parcel Service (UPS). I’m sure you’ve all not only heard of the company, but likely use the service nearly every day. UPS is the brown-clad delivery service you see moving around every town in America.

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Zacks Investment Research

Image Source: Zacks Investment Research

UPS is in the Transportation – Air Freight and Cargo industry which ranks in the Bottom 12% of our Zacks Industry Rank. The reason for the unfavorable ranks is that over the last 30 days, no fewer than 8 analysts have cut their estimates for the current year while seven have followed suit for next year. The bearish moves have cut the Zacks Consensus Estimate for the current year from $8.22 to $7.64 while next year’s number is off from $9.58 to $9.03.

There are currently no stocks within this industry which are in the good graces of our Zacks Rank. However, there are a couple of Zacks Rank #3 (Hold) stocks within the industry to note. These include Zacks Rank #3 (Hold) FedEx (FDX) and GXO Logistics (GXO).


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