Here's Why UPS Stock Slumped in July

(NYSE: UPS) stock failed to deliver for investors in July. The stock declined by 14.6% according to data provided by S&P Global Market Intelligence. There's little doubt about the reason for the monthly move, as most of it came after the release of a disappointing set of second-quarter earnings reports.

The package delivery company missed earnings estimates, declined to update on its full-year guidance again (management did this on the first-quarter earnings call in April), cited volume declines in its most profitable international trade lane (China to the U.S.), and served notice that one of its key end markets, small and medium-sized businesses (SMBs), are being inordinately impacted by the tariff conflict.

As such, the level of uncertainty and range of potential outcomes were so wide as to encourage management not to give guidance. In a nutshell, the uncertainty and ever-changing tariff landscape is making it very hard for SMBs (an area UPS is highly focused on growing into) to plan.

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Source Fool.com