The UPS Stock Rollercoaster Rides Out Another Turbulent Quarter

Prediction: UPS Stock Might Have Further to Fall

By Daniel Foelber, InvestorPlace Writer

Apr 5, 2025, 12:00 pm EDT

United Parcel Service (UPS) has been a stalwart in the logistics industry for decades, but its stock has been anything but steady in recent times. After a significant decline in 2022, UPS stock has been attempting to recover, but a recent prediction suggests that the company's shares might have further to fall.

According to a report from investment firm Stifel, UPS's struggles are far from over. The firm's analysts believe that the company's struggles with capacity constraints, labor costs, and a slowing economy will continue to weigh on its stock price.

"We expect UPS's revenue growth to slow further in 2025, driven by ongoing capacity constraints and a challenging macro environment," the report stated. "We also expect labor costs to remain a significant headwind, which will further pressure margins."

Stifel's prediction is not without precedent. In recent months, UPS has faced a number of challenges, including a shortage of drivers and a surge in demand for package delivery. The company has been working to address these issues, but the efforts have not yet paid off in terms of its stock price.

In the wake of the report, UPS's stock fell more than 2% on Monday, further solidifying the concerns about the company's future. The decline has left the stock at its lowest point in over a year, sparking concerns about the company's ability to recover.

While the news is not necessarily surprising, it does highlight the challenges that UPS faces in the current market. As the company continues to navigate these challenges, investors will be keeping a close eye on its progress, hoping that the company can turn things around and return to its former glory.

In the meantime, the prediction from Stifel serves as a reminder that even the most stalwart companies can struggle in the face of adversity. As investors, it is essential to stay informed and adaptable, as the market is always subject to change.