United Parcel Service (NYSE: UPS) is widely known as a safe and shareholder-friendly investment, but it's possible that one of its peers might present a better opportunity.
Getting ahead of itself
If you compare UPS' all-time stock movement to FedEx (NYSE: FDX) and Expeditors International of Washington (NASDAQ: EXPD), you’re not going to be overly impressed. The chart below demonstrates:
However, we need to more »
Note: This article has been amended to better reflect FedEx's air fleet.
n a recent Forbes article, Bill Conerly claims that the price for oil may decline by as much as $20 per barrel. I am not sure if it will happen, but there are several conditions that may push prices lower:
Due to current high oil prices, the total number of rigs has more than doubled since the more »
An inevitable showdown in Congress about raising the national debt ceiling at the end of next month will once again trigger fears of a possible government shutdown — and talk of going into another recession. Investors have endured this speculation before, and the market almost seems to thrive during these times. Still, nobody could be blamed for wanting to play it safe.
Fortunately, there’s plenty of businesses that are continuing more »
Analysts at Deutsche Bank are out with a note warning that oil prices could soon collapse. That’s great for American drivers, but it might not be the best for the performance of the S&P 500.
Still, not all companies benefit from higher oil prices. Some suffer significantly when oil is expensive. However, when oil is cheap, these companies can outperform, making them the ones investors want to own more »
Since the beginning of July, Air Products & Chemicals (NYSE: APD) has jumped significantly, from around $91.40 per share to more than $104.10 per share. Its share price has hit its 5-year high, partly due to its recent announcement of adopting a stockholder-rights plan, which leads to the market speculation that Air Products could be an activist target of hedge fund manager Bill Ackman.
According to Ackman, his fund more »
Shares of Air Products & Chemicals (NYSE: APD) soared on Thursday after the company’s board adopted a poison pill. Noting unusual activity in its shares, the firm undertook the measure to ward off a potential activist or acquirer.
Activist investor Bill Ackman has been raising funds to target an American company, and it’s possible that it could be Air Products -- it seems to fit his criteria. If that’s more »
The world economic crisis has hit logistics companies differently. The logistics trend is shifting from priority services, such as airlines, towards cheaper and slower forms of delivery like ground transport. This has affected traditional logistics companies such as FedEx (NYSE: FDX), United Parcel Service (NYSE: UPS) and CH Robinson (NASDAQ: CHRW) in diverse ways. Let’s take a look at each for further analysis.
UPS: The e-commerce solution
UPS, as more »
Google (NASDAQ:GOOG) has made headlines as it acheives greater and greater successes with its self-driving cars. However, one of the cars' main problems is that they currently cost more than a Ferrari. Google can easily afford that, but the general public cannot. As time goes forward, the costs should come down through economies of scale, but a self-driving car will at least be highly expensive in the short run more »
With an increasing number of people choosing to shop online, delivery companies are handling higher volume. That helps make up for a reduction in the amount of mail being sent, due to an increasing digital world. But before you buy just any carrier company, size really does matter in this sector.
FedEx's increased fleet is good for business
FedEx (NYSE: FDX) has recently risen by 4.4% to more than $103.10 per share on the market, marking the company's biggest one-day gain since October last year. Since the beginning of the year, the company’s stock price has increased nearly 11.6%, lower than the S&P 500’s gain of more than 17.8%. The recent one-day gain was due to the rumor that activist more »
No airfreight stock has been able to beat the market since the start of this year. United Parcel Service (NYSE: UPS) has seen the most appreciation of 18%, which is less than S&P 500's +20% performance for the year. This performance has not come as a surprise. Airfreight trends have decelerated throughout 2Q13, with particular weakness noted within the Asia region and on Asia-to-Europe trade routes.
Most recently more »
When the Internet first went mainstream, it seemed the post office would thrive. Online shopping would generate enough packages to make up for consumers who would now be communicating via the web.
Nearly two decades later, the impact of the Internet is still being felt. The United States Postal Service (USPS) regularly reports giant-size shortfalls, including almost $16 billion in losses last year. The world is quick to blame competition more »
Bill Ackman can’t stay out of the headlines. This week Reuters reported that the hedge fund manager may be raising a $1 billion fund to invest in FedEx (NYSE: FDX). While we can’t help but get excited about a big investment from a Wall Street titan, a big institutional investor isn't reason to make an investment.
Let's see what the two delivery giants have to offer more »
Sometimes, many times actually, I cannot bring myself to read the newspaper or watch the nightly news because of their never ending stream of doom and glum. I will not waste your time by sharing some headlines, as I am sure you are well aware of what I am talking about. As an investor, reading the news could prevent you from investing in the stock market on a regular basis more »
In American society, people have just a couple of options for how to ship packages. Is one cheaper than the other? What about performance? Is there more opportunity surrounding companies that provide business to these businesses?
Who is there?
FedEx (NYSE: FDX) is a bellwether of the economy because of its global presence and size. It recently reported its earnings and gave weak guidance, therefore making it evident that the economy remains weak. With a weak outlook from the company let's analyze what to expect from the company and check what it offers investors.
FedEx reported quarterly earnings of $2.13 a share, beating analysts’ estimates more »
Bill Ackman is planning to take on another company. The founder of Pershing Square is attempting to raise money to buy an activist stake in an American company.
Although trying to front-run Bill Ackman’s next investment is likely not the wisest strategy, Ackman’s criteria is enough to generate some interesting investment ideas.
Ackman’s target sounds like a company Warren Buffett would covet.
According to more »
While the parcel delivery industry certainly has its share of big players in United Parcel Service (NYSE: UPS) and FedEx (NYSE: FDX), sometimes it pays to look deeper and examine some of the smaller players in a segment dominated by a few companies. On that note, I’d like to take a look at Forward Air (NASDAQ: FWRD), which offers surface transportation and logistics services in North America. With very more »
A Global Presence
A couple of weeks ago, FedEx (NYSE: FDX) retired its last B727. While this type of aircraft is no longer needed, there will always be a need for a mail service, in good times and bad. The company barely felt the effects of the recession as although its net income dropped off in 2009, it quickly returned to its usual levels in 2010. FedEx's large, global more »
Lately, I’ve been working on an article about companies with strong competitive advantages. Part of the research for this involved making a list of dividend growth stocks that have a wide moat rating from Morningstar. As a part of the article, I was planning on doing a brief summary of some companies that were close to a five star rating. During this process, I stumbled across C.H. Robinson more »
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