UPS stock faces potential decline before earnings report

United Parcel Service (NYSE:UPS), based in the United States, is scheduled to announce its earnings on July 29, 2025. Historical data spanning the past five years indicates a consistent trend of unfavorable one-day returns following such announcements. In approximately 60% of these instances, the stock declined, with a median decrease of 6.5%. The most significant recorded drop after earnings was 14.1%. As traders prepare for this earnings release, they are utilizing historical patterns to inform their investment strategies. In addition to the aforementioned data, the consensus among analysts for the upcoming quarter is an earnings estimate of $1.57 per share, down from $1.79 per share from the same quarter last year. Sales projections stand at $20.85 billion, reflecting a decline from $21.82 billion during the prior year. This anticipated reduction in both earnings and revenue hints at possible challenges for UPS as it navigates the current economic landscape. With a market value of $87 billion, United Parcel Service has demonstrated operational profitability over the last twelve months. The company achieved revenues of $91 billion, which includes operating profits amounting to $8.5 billion and a net income of $5.9 billion. Despite past performance, analysts and traders are looking closely at the upcoming earnings announcement, recognizing that the results relative to consensus estimates will be critical in determining the stock's immediate future. The historical performance of UPS stock in the aftermath of earnings releases is also analyzed, with findings indicating positive returns in 40% of cases across five years. However, this optimistic figure reduces to just 25% when considering the last three years. Traders are encouraged to assess both immediate and medium-term returns to devise their investment strategies effectively. Various approaches, such as pre-earnings positioning and post-earnings analysis, can be utilized to harness historical tendencies to potentially benefit from trading in this stock.