It has taken time for United Parcel Service, Inc. (NYSE: UPS) to recover from its loss of the Amazon (NASDAQ: AMZN) contract, but the recovery is at hand. The Q1 earnings results revealed not only strengths but also an accelerated outlook for inflection, despite the tepid guidance.
The tepid guidance is the operational factor in Q2, as it led the market to sell off, and the selloff is a buying opportunity. While tepid relative to the analysts' consensus, investors should focus on the Q2 growth outlook and the high probability that guidance is cautious. Q1 strengths were not reflected in the guidance update and are unlikely to cease in Q2.
