Stock Story -
What Happened:Shares of parcel delivery company UPS (NYSE:UPS) fell 13.5% in the afternoon session after the company reported second-quarter earnings results. Its EPS missed, and its revenue fell short of Wall Street's estimates. The outlook wasn't encouraging, as the company slightly lowered its full-year revenue guidance. It also lowered full year operating margin guidance by a more significant amount. Overall, this was a mediocre quarter for United Parcel Service (NYSE:UPS).
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy United Parcel Service? Find out by reading the original article on StockStory, it's free.
What is the market telling us:United Parcel Service's shares are not very volatile than the market average and over the last year have had only 3 moves greater than 5%. Moves this big are very rare for United Parcel Service and that is indicating to us that this news had a significant impact on the market's perception of the business.
United Parcel Service is down 20.6% since the beginning of the year, and at $125.66 per share it is trading 33.3% below its 52-week high of $188.34 from July 2023. Investors who bought $1,000 worth of United Parcel Service's shares 5 years ago would now be looking at an investment worth $1,194.
![Why United Parcel Service (UPS) Stock Is Nosediving](https://d68-invdn-com.investing.com/content/picb9e283d81beb9b53d194b6557ed5c72f.jpeg)