UPS and FedEx are considered bellwethers of the economy. When companies are doing well, they ship more goods and package volumes rise, boosting revenues for transportation service providers.
While both companies have been hit by a broad decline in shipping rates, lower oil prices from the summer of 2008 have helped moderate expenses dramatically at both UPS and FDX. Exorbitant fiscal and monetary spending could prompt inflationary pressures down the road that would not bode well for either company.
Both shippers' shares trade within shouting distance of each other. Over the short term, UPS holds a sizeable advantage in market share while FedEx is more dexterous and could provide quicker growth.
2010 © Better Trades | Contact Us