Air Freight and Logistics

  • This Delivery Giant Still Looks Cheap

    By Matthew Frankel - March 14, 2013 | Tickers: FDX, IYT, UPS

    FedEx (NYSE: FDX) is a leader in guaranteed time delivery for both domestic and international package delivery, the demand for which has skyrocketed lately.  With the growing number of consumers doing their shopping online, FedEx’s revenue has nearly doubled over the past decade.  Although their stock is currently trading towards the high-end of its historic valuation at 17 times earnings, I think this is still a bargain, due to more »

  • Stay Invested in This Transport Despite Lower Guidance

    By Vineeta Mittal - January 2, 2013 | Tickers: DPSGY, FDX, TNTEY, UPS

    On Dec. 19, FedEx (NYSE: FDX) announced 2Q13 results along with 3Q13 EPS guidance. Shares of FedEx fell by 1.8% to $93.20 on the same day. 

    Disappointing Results for 2Q13….

    The company reported 2Q13 EPS of $1.39 well below consensus of $1.41, indicating that Super-storm Sandy reduced 2Q13 earnings by $0.11/share at the Express Division. Moderate growth in revenues (4.9% yoy) was offset more »

  • You Should Buy These Boring Delivery Companies

    By Chris Hodge - November 2, 2012 | Tickers: CHRW, EXPD, FDX, UTIW

    Air delivery and freight are some of the most boring businesses on the face of the earth. But they balance this out by being extremely dependable. Despite the impact that the recession of the past few years has had on the industry, indeed every industry, these companies have been survivors. Their profit margins are solid, their dividends are strong, and they've continued operating in as many new and inventive more »

  • Every Cloud has a Silver Lining

    By Sharmistha Banerjee - October 2, 2012 | Tickers: FDX, FWRD, UPS

    There is concern over the recent significant underperformance within the Transport Sector. Transport stocks, despite retreating fuel prices, have been on a bumpy road for weeks. The sector is typically seen as a leading indicator for the broader equities market. It features prominently in the Dow Theory, one of the oldest market timing tools out there.

    The economic bellwethers FedEx (NYSE: FDX) and United Parcel Service (NYSE: UPS) are encountering more »

  • Looking Swell: Stocks to Keep an Eye On

    By Shaunak Kar - October 2, 2012 | Tickers: CHRW, ECBE, MTN

    First look at the financial headlines might give you the impression of things going wrong at the market. These headlines are mostly made up of major companies and their concerns over the economy resulting in cut-downs in every sector. As markets see red almost all over the world, here is a peek at a few stocks that are driven and nudged by mergers and new markets ventures amongst others and more »

  • UPS and Air Shippers Offer Steady Returns in the Midst of Global Turbulance

    By Joshua Bondy - August 29, 2012 | Tickers: ATSG, FDX, FWRD, UPS

    The global transportation market offers returns and risk.  The largest transportation companies like FedEx Corp (NYSE: FDX) and United Parcel Service, Inc. (NYSE: UPS) have billions of dollars of capital invested, expansive distribution networks, and decades of experience. There are large economic moats in this industry which make it easier to fend off foreign competitors like DHL.  The oligopoly of FedEx Corp (NYSE: FDX), USPS, and United Parcel Service, Inc more »

  • This Global Shipping Giant Delivers

    By Matthew DiLallo - August 9, 2012 | Tickers: BRK-B, BIP, CMRE, DAC, FDX, SSW

    The business of moving goods from point A to point B is critical to global trade. Investors can do very well investing in one of the many links of the value chain.  We all know that Warren Buffett’s Berkshire Hathaway (NYSE: BRK-B) has chosen railroads as his value creator.  Personally, I’m a big fan of port and toll road infrastructure owner Brookfield Infrastructure (NYSE: BIP).

    Before you can more »

  • Why I'm Buying this Global Shipping Giant

    By Matthew DiLallo - June 11, 2012 | Tickers: EXPD, FDX, SSW, UPS

    Europe is on the verge of economic collapse, China is in the midst of slowing down, yet I’m buying a company that makes its money navigating the stormy seas of global trade.  I’m building out a portfolio of exceptional dividend paying stocks so that I can use the cash to buy exceptional growth stocks.  I call this the “No Drip, No Mess” Portfolio, though today we might get more »

  • The Week that Was: FedEx, eBay, Amazon and Brookfield Infrastructure

    By Tim Brugger - March 26, 2012 | Tickers: AMZN, BIP, EBAY, FDX, UPS

    Though the week ended on a down note – the market itself didn’t perform well, and then there was that teeny little trading glitch on Friday that blew up Apple stock trading for a while – fundamentally little has changed. Opportunities remain across multiple industries and there are also a couple of over-bought stocks that bear a serious looking into.

    FedEx

    Not exactly an afterthought lingering in the shadow of industry more »

  • FedEx: An Even Better Buy Now

    By Tim Brugger - March 22, 2012 | Tickers: FDX, UPS

    In case you missed this morning’s announcement, FedEx (NYSE: FDX) shared what by all accounts was a stellar quarter.

    A Recap

    • The company more than doubled fiscal Q3 earnings vs. the year ago period – earning a staggering $1.65 a share compared to $0.73 last year.
    • Now a portion of that – about $0.10 a share - came from a one-time item. But even excluding that, nearly doubling bottom-line more »
  • Is TNT Express a Good Addition for UPS?

    By Tim Brugger - March 20, 2012 | Tickers: FDS, UPS

    The announcement by UPS (NYSE: UPS) management of the successful negotiations to acquire Dutch transport leader TNT Express was met with applause from most analysts and certainly from investors.

    After three straight years of revenue and earnings growth, UPS was already a sound investment. So that begs the question – does the recent announcement and subsequent increase in share price warrant investor consideration for what is now the highest valuation in more »

  • E-Commerce Drives Changes at UPS and FedEx

    By Tony Daltorio - March 14, 2012 | Tickers: FDX, UPS

    One of the most interesting changes which has occurred in the U.S. economy in recent years has been the rise of business to consumer e-commerce. From nowhere, it has blossomed into an approximately $170 billion industry with Amazon.com being the biggest e-commerce vendor. Amazon though is a well-known story to investors. 

    A more interesting tale may be to look at how e-commerce is completely changing the world for more »

  • UPS Packages a European Deal

    By Tony Daltorio - February 24, 2012 | Tickers: FDX, UPS

    In its entire 105-year history, perhaps United Parcel Service's (NYSE: UPS) boldest move ever is the recent $6.4 billion (9 euros per share) bid launched for its European rival TNT Express. The deal would make UPS the biggest express mail carrier in Europe and could generate about $450 million in synergies thanks to some overlap in their networks. 

    TNT Express is the smallest of the big four global more »

  • AMR Delisting Ratchets up the Risk

    By Tim Brugger - January 3, 2012 | Tickers: DAL, BA, UAL, LCC

    It came as no surprise that AMR announced they were recently notified of the New York Stock Exchange’s (NSYE) intention to delist their stock, along with publicly traded debentures and Public Income Notes (PINES) on January 5th, 2012. As if investors didn’t already have enough to worry about. But the NYSE has their rules and stocks that stay under a $1 a share for 30 straight days are more »

  • How High Can UPS Count?

    By Roland Hughes - December 22, 2011 | Tickers: FDX, UPS

    Well, according to this video, one.

    http://www.youtube.com/watch?v=YCwx_UBj2KI

    At this point I shouldn’t need to include the link of the FedEx (NYSE: FDX) driver throwing a computer monitor over a fence. Even if you never visit YouTube, that video has been on every news show around the world. You knew it was only a matter of time once the FedEx driver video surfaced until more »

  • Prepare For a 2012 ATSG Takeoff!

    By Tom Gibbs - December 21, 2011 | Tickers: ATSG, AYR

    “…Most of the stocks we buy have low expectations.  If the future is a little better or a lot better than the low expectations – it doesn’t have to be great – you have the chance for asymmetric returns on the upside.  And, hopefully, you don’t lose much on the ones that don’t do better than the low expectations, because you didn’t pay much for them in the more »

  • Lockheed Martin Announcement Good for Everyone

    By Tim Brugger - December 20, 2011 | Tickers: GD, LMT, NOC, RTN, BA

    By now you may have heard about Japan’s announcement they’ve chosen Lockheed Martin’s F-35 fighter jet as their next aviation weapon of choice. With the hubbub from the U.S. government still brewing over the stealth fighter snafus, this is a major win for Lockheed (NYSE: LMT). On the political front, the contract couldn’t have come at a better time with uncertainties in North Korea and more »

  • On Again, Off Again: The Impact of Retail Sales Figures

    By Tim Brugger - December 16, 2011 | Tickers: COST, DFS, MA, TGT, V, WMT

    Like a seesaw, the National Retail Federation has teetered between disappointing holiday sales, so-so, and a banner season. As you may have heard, apparently it's back to “banner” this year with retail sales expected to climb as much as 3.8% vs. the 2.8% predicted a few minutes ago. Okay, that’s a bit of an exaggeration, but you get the idea. Combine the revised numbers with positive more »

  • American Airlines: A Cheap But Risky Play

    By Tim Brugger - December 12, 2011 | Tickers: ALK, AAMRQ.PK, DAL, UAL

    By now American Airlines(NASDAQOTH: AAMRQ.PK) bankruptcy saga is old news. Investors that follow the company know last month’s announcement was not a matter of if, but when. Company representatives cited high fuel costs as one of the explanations for the filing, and that was certainly part of it. But even more telling were the problems AMR incurred by not filing for bankruptcy (BK) years ago, as other major more »

  • Fed Ex or UPS: Better Decide Fast

    By Tim Brugger - December 11, 2011 | Tickers: AMZN, EBAY, FDX, UPS

    The shipping industry, by most accounts anyway, is back. October wasn’t pretty, but it appears the numbers for November are going to be very strong. Not surprising really since it’s not difficult to imagine more consumers shopping from the comfort of their home. eBay (NASDAQ: EBAY), Amazon (NASDAQ: AMZN) and other online retailers have confirmed that to be the case so far this Holiday season. And when they more »