The 1 Thing You Need to Know Before Buying UPS Stock
There are only a couple of weeks left before the end of the first quarter, so it's time to consider whether UPS (NYSE: UPS) stock is a buy before the company issues its earnings results on April 29. It's likely to be an eventful quarter for the company that could make or break the investment thesis for the stock. Here's what you need to know before investing in UPS.There's no point tiptoeing around the elephant in the room: Package delivery is a cyclical activity. When the economy catches a cold, UPS sneezes, and when it returns to full health, UPS glows. Unfortunately, several management teams at industrial and transportation companies have discussed feeling some near-term weakness.Delta Air Lines recently cut its first-quarter revenue guidance to about 4% from a 7%-to-9% range previously. United Airlines management recently told investors it expected earnings at the low end of its guidance range with a notable drop-off in government bookings in the quarter. Industrial company 3M's CEO, Bill Brown, told investors there had been a push-out of sales starting in March. Semiconductor test technology company Teradyne's management cut its full-year guidance on the back of order push-outs and customers taking a cautious approach and reviewing capital spending options.Continue reading
There are only a couple of weeks left before the end of the first quarter, so it's time to consider whether UPS (NYSE: UPS) stock is a buy before the company issues its earnings results on April 29. It's likely to be an eventful quarter for the company that could make or break the investment thesis for the stock. Here's what you need to know before investing in UPS.
There's no point tiptoeing around the elephant in the room: Package delivery is a cyclical activity. When the economy catches a cold, UPS sneezes, and when it returns to full health, UPS glows. Unfortunately, several management teams at industrial and transportation companies have discussed feeling some near-term weakness.
Delta Air Lines recently cut its first-quarter revenue guidance to about 4% from a 7%-to-9% range previously. United Airlines management recently told investors it expected earnings at the low end of its guidance range with a notable drop-off in government bookings in the quarter. Industrial company 3M's CEO, Bill Brown, told investors there had been a push-out of sales starting in March. Semiconductor test technology company Teradyne's management cut its full-year guidance on the back of order push-outs and customers taking a cautious approach and reviewing capital spending options.
