EARN25

Why This Delivery Stock Could Be Headed for Fresh Lows

Year-to-date, UPS is down more than 19%

Digital Content Manager
Jun 16, 2022 at 2:52 PM
facebook X logo linkedin


The shares of United Parcel Service, Inc. (NYSE:UPS) are down 2.6% to trade at $171.44 this afternoon, as broader market headwinds blow on Wall Street. Shares have made valiant attempts to come off their May 19, annual low of $165.34, but still carry a hefty 19.7% year-to-date deficit. If past is precedent, it does not look like the security will break out of this rut anytime soon. This is because UPS just ran into a historically bearish trendline that has pressured the shares lower in the past.

According to Schaeffer's Senior Quantitative Analyst Rocky White's latest study, UPS is now within one standard deviation of its 50-day moving average. The delivery name has seen five similar signals over the past three years, and was lower one month later 60% of the time, averaging a 4% loss for that period. A comparable move from the stock's current perch would place it at a fresh annual low of $164.59.

UPS 50-Day

The brokerage bunch is split toward United Parcel Service stock, meaning there is plenty of room for pessimism to build. In fact, 10 analysts call the security a "buy" or better, while the remaining 10 say "hold" or worse. 

A shift in the options pits could also add pressure. This is per the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.76, which sits higher than just 13% of readings from the past year -- indicating short-term options traders are incredibly call-biased at the moment.

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!