With a market cap of $82.6 billion, United Parcel Service, Inc. (UPS) is a package delivery and logistics provider that offers transportation and delivery services. Founded in 1907, the Atlanta, Georgia-based company operates through two segments, U.S. Domestic Package and International Package.

Companies worth $10 billion or more are generally described as "large-cap stocks." UPS fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the freight and logistics industry. UPS benefits from being the world’s largest express carrier and package delivery company, with its package operations spanning worldwide.

Despite its notable strength, UPS slipped 34.3% from its 52-week high of $148.15, achieved on Jul. 18, 2024. Over the past three months, UPS stock fell 18.2%, lagging behind the broader Dow Jones Industrial Average’s ($DOWI) 3.5% fall during the same time frame.

Moreover, shares of UPS dipped 22.8% on a YTD basis and 29.9% over the past 52 weeks, significantly underperforming $DOWI’s YTD marginal fall and 9.4% returns over the last year.

To confirm its recent downturn, UPS has been trading mostly below its 200-day moving average since last year and under its 50-day moving average since January-end, with some fluctuations.

UPS stock declined marginally following the release of its Q1 earnings on Apr. 29. The company reported revenue of $21.5 billion, flat year-over-year, and exceeded the analyst estimates. Its operating margin came in at 7.7%, also in line with the previous year’s value. UPS’ adjusted EPS came in at $1.49 and surpassed the consensus estimates by 4.9%.

In the freight and logistics space, its rival, FedEx Corporation (FDX), has slightly outperformed in the long term, with its shares declining 22.6% on a YTD basis and 14.2% over the past year.

Wall Street analysts are moderately bullish on UPS’ prospects. The stock has a consensus “Moderate Buy” rating from the 28 analysts covering it, and the mean price target of $116.47 suggests an ambitious potential upside of 19.6% from current price levels.