- United Parcel Service, Inc. shows a decline in the annual profit margin.
- UPS’s stock price has given a return of -18.7% in the last six months.
- United Parcel Service, Inc. has a share float of 530 Million shares.
The stock price of United Parcel Service, Inc. (NYSE: UPS) is currently following a downward trajectory in the weekly timeframe, marked by a consistent pattern of forming lower highs.
A comprehensive analysis of technical summary indicators reveals a prevailing negative momentum for UPS stock. Out of a total of 26 indicators, 14 are giving a sell signal, indicating a potential price decline in the near future.
The profit margin percentage of the company has shown a decline. In 2021, the profit margin was 13%, whereas it declined to 11% in 2022. This indicates that the company is poorly performing and giving poor returns.
UPS stock has given a return of around -18.7% in the last six months and -6% in one year. This shows that the company is giving poor returns, which might make investors lose interest.
The price reached a high of $233.72 in February 2022, and subsequently, the stock price started declining. The price declined by almost 35%. Recently, UPS stock broke below a crucial support level at $158.61, resulting in a swing low. The overall structure of the stock’s price suggests a negative outlook, with the potential for further decline in the upcoming days.
United Parcel Service, Inc. (UPS) Stock Price Analysis
UPS by writer50_tcr on TradingView.com
The price of UPS stock is trading below the 50-day and 100-day EMAs. This is considered a negative sign and the price is likely to fall in the upcoming days.
Coming to the technical indicators, we can observe that the signal line is positioned below both a red histogram formation and the MACD line. This configuration indicates weakness in the stock and raises the likelihood of a future price drop.
Additionally, both the 14-day SMA line and the RSI line for UPS stock are hovering near the 30 mark. The negative placement of the RSI line indicates that the price might fall further in the future.
Conclusion
As per the analysis, United Parcel Service, Inc. (UPS) stock is currently in a downward trend. This trend is anticipated to persist, given that the price is consistently forming lower highs and various indicators are pointing towards a downward trajectory. Therefore, it is expected that the UPS stock price will experience a decline in the coming days.
Technical Levels
- Support Level– $150
- Resistance Level– $158.
Disclaimer
The views and opinions of the author, or anyone named in this article, are for informational purposes only. They do not offer financial, investment, or other advice. Investing or trading crypto assets involves the risk of financial loss.
Dr. Naveen Singh is an entrepreneur with achievements in sports, academics, healthcare, innovation, blockchain technology, telecommunications, and philanthropy. He is the Co-Founder and Chief Executive Officer (CEO) of Inery, the first layer-1 blockchain programmed for database management. With Inery, he aligns with his vision of a new paradigm for data to empower web3 and complete decentralization.