United Parcel Service (NYSE: UPS) stock was trading at deep value levels, offering investors the second, generational buying opportunity in five years, which was confirmed by the Q1 results. The results show that market fears for the quarter, while justified, were unfounded. The Q1/Q2 price correction was an overreaction that extended the existing trend deeper into oversold territory.
Price action following the release was bullish. The market cheered the news, revealing strong support at April lows, suggesting the bottom is in or close at hand and the rebound is about to begin. However, uncertainty in the outlook may continue to hinder action until later in the year, when more clarity becomes available. Until then, investors have time to build positions, collect the 6.75% annualized dividend yield, and benefit from the impact of share repurchases.
