United Parcel Service (NYSE: UPS) Stock Chart – Earnings beat propels stock price
United Parcel Service (UPS) rose by 8% on Wednesday after the company posted earnings that beat Wall Street expectations.
The company reported earnings per share of $1.96 and total revenue of $18.05 billion, compared to analyst estimates of $1.93 and $17.96 billion. With regard to guidance, management reaffirmed its earnings guidance of $7.45-7.75 per share, compared to the average estimate of $7.45.
Despite these results, CEO David Abney explained that, “I recently met with trade officials from the US and from China. While I’m encouraged by their commitment, we need to see measurable progress. The business community is facing prolonged trade uncertainty.”
Our view is bullish, given the stock’s breakout through a Valid Trend Line (VTL), as shown on the chart above.
Our approach to stock analysis uses market cycles to project price action.
UPS is clearly still in the rising phase of its current cycle. This move represents a significant breakout, should it hold through the end of this week. We see further possible upside within the current cycle.
For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.
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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
