2007-2008 vs. 2020 Crisis Comparison: How Did United Parcel Service Stock Fare Compared with S&P 500?

by Trefis Team
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On Monday, the U.S. markets saw their biggest sell-off since the 2008 crisis falling by over 7%. There were 2 distinct factors behind the sharp decline: a continued increase in the number of novel Coronavirus cases outside China, and a collapse in crude oil prices with Saudi Arabia boosting production. Transportation stocks also saw a large selloff, with United Parcel Service (NYSE: UPS) falling over 6% in Monday’s trading. While the decline in oil prices is slightly positive for UPS, given that fuel expenses accounted for about 5% of the company’s operating expenses in 2019, demand for shipments is expected to take a hit hurting revenues. (UPS Expenses: How Does United Parcel Service Spend Its Money) In this analysis, we compare the performance of the company’s stock over the current crisis with the economic crisis of 2008 and also compare its performance with the S&P 500. View our interactive dashboard analysis on 2007-08 vs. 2020 Crisis Comparison: How United Parcel Service Stock Fare Compared with S&P 500?

UPS Stock vs. S&P 500 Over 2020 Coronavirus/Oil Price War Crisis

  • UPS stock declined by 15% since the WHO declared a global emergency on Jan 31 and was down by about 6% on Monday, March 9th alone.
  • The S&P 500 has declined by 17.5% since the WHO declared a global emergency on Jan 31 and declined by about 7.5% on Monday, March 9th.

UPS Stock vs. S&P 500 Over 2007-08 Financial Crisis

  • UPS stock declined from levels of around $52 in October 2007 to levels of around $29 in March 2009 and recovered sharply to levels of about $42 in early 2010.
  • Throughout the crisis, UPS stock declined by as much as 43% from its approximate pre-crisis peak. This was relatively better compared to the S&P which fell by as much as 50%.
  • However, by early 2010, UPS managed to recover over 42% from the March 2009 levels. In comparison, the S&P rose by 48% in the same period.

 

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