NEW YORK (TheStreet) -- Shares of United Parcel Service (UPS) are sliding, down 2.08% to $107.55 in midday trading on Wednesday, after shipping peer company FedEx (FDX) missed analysts expectations for its fiscal second quarter this morning when it reported its earnings results.
FedEx reported second quarter earnings of $616 million, or $2.14 per diluted share, higher than the $1.57 per share a year ago, but falling short of analysts' expectations of $2.22 per share.
The company posted revenue of $11.94 billion for the period, slightly lower than the $11.98 billion analysts expected for the quarter.
Earlier this week, UPS had its rating cut to "hold" from "buy" by analysts at Deutsche Bank with a $116 price target.
Deutsche Bank analysts cited a more balanced risk/reward profile following the recent rally in shares, driven by dim pricing changes, strong ecommerce growth, and declining fuel prices.
The firm also noted that "weather remains a question mark that could serve to either bolster or depress earnings if mother nature proves to be particularly challenging around peak volumes."
Separately, TheStreet Ratings team rates UNITED PARCEL SERVICE INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNITED PARCEL SERVICE INC (UPS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."