UPS share price is soaring on the day after the company released stellar earnings that completely blew all expectations out of the sky. UPS share price has surged 15.8% after it reported quarterly revenues of $20.46 billion, representing a 13.4% increase that beat estimates of $17.48 billion. Furthermore, the company posted earnings per share of $2.13, which was better than estimates of $1.07 per share.
UPS is one of the companies which happened to be on the side of the coin that benefitted from the coronavirus pandemic. As physical locations and outlets were locked to human traffic, logistics companies such as UPS became the only way with which goods could be shipped across areas. The accompanying increase in online shopping and logistics led to a rise in UPS’s domestic consumer shipments by 65%. Daily volumes in the US rose by 22.8%, and it also saw a massive surge in shipments of healthcare equipment from manufacturers to the coronavirus battlefronts.
UPS is presently trading at 142.51, off intraday highs at 145.50 as the stock opened the day with a substantial upside gap.
Today’s surge has sent the stock towards multi-year highs. 145.50 is now the level for buyers to beat. If price breaks above this level, we could be in for new record highs on the stock. Fibonacci extension targets from the October 2011 lows to the January 2018 highs can be found at 157.13 (100%), 177.80 (127.2%) and 188.59 (141.4%).
On the flip side, downside targets remain at 135.61 and 125.24, with 121.22 and 114.86 remaining credible downside targets. It would be logical for buyers to look for dip-buying opportunities from among these targets if the sentiment on the stock remains bullish in the weeks ahead.
