Why United Parcel Services Inc. (UPS) Performed Worst On Tuesday?

We recently published a list of Pulse of The Market: Tuesday’s 10 Worst Performers. In this article, we are going to take a look at where United Parcel Services Inc. (NYSE:UPS) stands against other Tuesday’s worst performers.

Wall Street finished Tuesday’s trading in a lackluster fashion, with all major indices ending in the green territory, but only eking out small gains.

The tech-heavy Nasdaq rallied the most, up by 0.46 percent, followed by the S&P 500 with 0.16 percent, and the Dow Jones with a marginal 0.01 percent.

The muted trading spilled over into individual stocks, with 10 in particular posting significant losses. In this article, let’s explore the top 10 companies that performed poorly on Tuesday.

To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.

A warehouse filled with boxes of parcels, symbolizing the companies reliable logistics services.

United Parcel Services Inc. (NYSE:UPS)

United Parcel declined by 5.05 percent on Tuesday to end at $109.95 after Bank of America downgraded its price target for the company.

In its market note, Bank of America cut its price target for UPS by 3 percent to $129 from $133 previously, still a 17-percent upside from the company’s last closing price. However, it maintained its Buy rating on its shares.

Additionally, the investment firm reduced its earnings per share target for the first quarter of the year, now to $1.31 from $1.55 previously on the back of weak volumes and tariff uncertainties.

Further aggravating the sentiment was its peers’ dismal earnings performance and missed estimates in the fourth quarter of the year.

Last week, UPS counterpart FedEx posted an EPS of $4.51, lower than the $4.56 targeted by analysts. Still, its revenues ended at $22.2 billion, topping the $21.9 billion that analysts had called for.

Overall, UPS ranks 6th on our list of Tuesday’s worst performers. While we acknowledge the potential of UPS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as UPS but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.