A UPS driver loads packages to be delivered onto a dolly from a United Parcel Service (UPS) all-electric vehicle in Sacramento, California, U.S.,Stifel has downgraded UPS stock, which has been on a strong move upward after better-than-expected earnings.
Shares of the world's largest package delivery company soared more than 9% last week after UPS reported better-than-expected second-quarter earnings, driven by high demand for Next Day Air.
UPS has been investing billions of dollars to make a faster and more efficient network.
Ross said although the investments working well for the company and the stock, the spending will prevent margins from expanding in the near-term.
Ross said fears about e-commerce giant Amazon are "somewhat overblown" because Amazon seems to be adding to the network density for UPS.