UPS Stock Takes a Hit Despite Strong Earnings

Despite better-than-expected second-quarter earnings, United Parcel Service Inc. (UPS) stock is on track for its worst weekly performance since March.

The company's operating margin shrunk to 4.1% from 8.6% last year, but Goldman Sachs said improved cost control and reduced Amazon-related volumes are boosting profitability.

Analysts raised their price targets, with Evercore ISI increasing its target to $118, implying an 11% upside from current levels, while Morgan Stanley remained cautious due to uneven recovery trends and structural challenges.