There is not much positive to say about United Parcel Service (UPS) , even as the stock is nearing multi-month lows. The fundamental story for UPS is well-known and talked about often, but we really don't need to see more than the chart to understand how much trouble the company is in.
We had a request from a visitor for a read on this big transport company, which not long ago was part of TheStreet Pro Portfolio and was near all-time highs.
We exited the name back in 2021 and scored a nice win, but have not been a buyer since then.
Today, UPS is down about 40% from those levels and is struggling with higher costs, ruthless competition and higher wages across the board. Can the stock recover? The charts tell us no at this moment, but perhaps down the road some gains may be had.
The MACD (moving average convergence divergence) has just started to roll over. There is support perhaps at the October lows, but if that gets tested and fails there is a huge drop down towards $102.
Money flow is weak, RSI (relative strength index) is down and stochastics bearish. You get the picture. It's an avoid for as long as possible. If the $155 area is exceeded on strong volume, it might be worth a look.
At the time of publication, TheStreet Pro Portfolio had no position in the securities mentioned.