After meandering for much of 2009, United Parcel Services' (UPS) stock finally broke through resistance, confirming the earlier bullish analysis, and it goes without saying that I'm reiterating my buy rating for the company's shares, first recommended on April 7, 2009, at a price of $51.28.

The worst is over for the delivery business and better quarters are ahead: increased pricing power, in some delivery segments, and higher volumes will ensue in the quarters ahead, as the U.S./global economic recoveries strengthen. Overall, revenue should increase 7-9% in FY2010 after a difficult FY2009.

Continue reading UPS Is Well-Positioned for the Strengthening Global Economy

UPS Is Well-Positioned for the Strengthening Global Economy originally appeared on BloggingStocks on Fri, 15 Jan 2010 17:20:00 EST. Please see our terms for use of feeds.

Continue reading FedEx ups its second-quarter estimate

FedEx ups its second-quarter estimate originally appeared on BloggingStocks on Tue, 08 Dec 2009 09:30:00 EST. Please see our terms for use of feeds.

Speedy delivery service United Parcel Service (NYSE: UPS) delivered a mixed bag of third-quarter results on Thursday.

The company reported earnings of 55 cents per share, topping the consensus estimate by two cents per share. While these results were better than the consensus estimate, they are a far cry from the 96 cents per share earned in the same quarter a year ago.

Quarterly sales came in at $11.15 billion, short of the consensus estimate of $11.17 billion and last year's $13.1 billion.

Continue reading UPS delivers lower Q3 earnings

UPS delivers lower Q3 earnings originally appeared on BloggingStocks on Thu, 22 Oct 2009 09:20:00 EST. Please see our terms for use of feeds.

This morning, JPMorgan Chase upgraded FedEx (NYSE: FDX) to "overweight" from "neutral," citing the company's "strong operating leverage" that "should drive performance for the stock when there is improvement in the economy." The brokerage also stated that bad news is already reflected in FDX's stock price. They also upped the dean of delivery's price target to $66 per share from $60 per share.

Is this upgrade a smart move or wishful thinking? I have reservations on a couple of levels, so let's address those, shall we? My first reservation is on a fundamental level. The per-barrel price of oil is rising and could continue to rise, leading to higher gas prices. If this situation occurs, we could see FedEx punished a bit, mainly because of the company's reliance on gasoline. Yes, there is a possibility that FedEx could break its reliance on black gold, but it would take a fleet of hybrid or electric vehicles for this to happen -- and that costs a lot of money.

Continue reading Is JPMorgan's FedEx upgrade wishful thinking?

Is JPMorgan's FedEx upgrade wishful thinking? originally appeared on BloggingStocks on Tue, 23 Jun 2009 11:20:00 EST. Please see our terms for use of feeds.

Hey, FedEx (NYSE: FDX) beat the estimates of Wall Street! That's awesome, right? Not in this case. The nemesis of United Parcel Service (NYSE: UPS) reported Q2 numbers on Thursday, and they didn't matter for the most part. What mattered more was that management seemed to be in a frantic mood over cutting costs and capital expenditures.

According to this article, FedEx only managed to deliver (yes, I used that word on purpose) a four-cent rise in earnings per share; they came in at $1.58, one penny higher than what analysts expected. Problem for FedEx is this lousy economy. The company will have a hard time ensuring that it can deliver (there's that word again) on its promised guidance for the rest of the year. Simply put, if the economy continues to sour, and if confidence doesn't bounce back soon, then there will be less demand for its services. No complex arguments necessary for this thesis, so far as I can tell. I would imagine that it's going to be rough for management to keep employee morale going at an acceptable level with all the cost reductions and job cuts that are being used to navigate the stormy seas. One of the worst problems I see is the minimum one-year freeze on 401(k) company matching contributions that was mentioned in the press release. Seriously, that will be a bitter pill to swallow for many.

I personally would stay away from FedEx's stock. Yes, it is well off its highs, but is all the bad news priced in the stock? My opinion: not on your life. I cannot see how anyone could read that earnings release and subsequently decide to buy shares of the company. The commentary is kind of unnerving, if you ask me. CEO Frederick W. Smith thinks the current financial climate is one of the worst seen in the company's history. Tell us something we didn't already know, buddy! What I find unnerving is that I really don't get a sense that there's any sort of plan beyond the cuts. The company is just looking to survive as best it can. I wish FedEx luck, but I don't want to get involved with the stock. At all.

Disclosure: I don't own any company mentioned; positions can change at any time.

FedEx beats estimates, but I'll stay away originally appeared on BloggingStocks on Fri, 19 Dec 2008 12:20:00 EST. Please see our terms for use of feeds.

UPS delivers by bike this holiday season originally appeared on BloggingStocks on Tue, 02 Dec 2008 07:33:00 EST. Please see our terms for use of feeds.

In my Battle of the Brands: UPS vs. FedEx, many people commented on how one company handled remote locations better than the other. If you think Avoca, Minnesota is a "remote location" check out this study.

• Apia, the only city on Upulu, one of the islands of Samoa. Upulu lacks something important for parcel carriers - street addresses.

• Florianopolis, an island off the Brazil near Uraguay, which is considered a "remote area" by carriers.

Continue reading DHL wins The Great Package Race of 2007, not FedEx or UPS

DHL wins The Great Package Race of 2007, not FedEx or UPS originally appeared on BloggingStocks on Wed, 02 May 2007 16:51:00 EST. Please see our terms for use of feeds.