Today’s Research Reports on Stocks to Watch: United Parcel Service and FedEx Corporation

NEW YORK, NY / ACCESSWIRE / March 7, 2018 / United Parcel Service shares moved higher on Tuesday after an optimistic upgrade from a Nicolaus Stifel analyst. The company also announced a new COO. FedEx also had an optimistic note from a Barclays analyst this week.

RDI Initiates Coverage on:

United Parcel Service, Inc.
https://rdinvesting.com/news/?ticker=UPS

FedEx Corporation
https://rdinvesting.com/news/?ticker=FDX

United Parcel Service, Inc. shares closed up 3.77% yesterday but lost some of the gains in after-hours. The company announced yesterday that it has picked a 33-year veteran as its new COO. UPS has chosen Jim Barber for the position, who was “elevated” to be given the duty. He will be responsible for the delivery company’s small package, freight, supply chain and freight forwarding units as well as engineering. He joined the company back in 1985 as a driver and was president of UPS International since 2013. It was also early yesterday morning that Stifel Nicolaus upgraded the stock. The firm has said the stock has been “oversold” and that its business is still “strong.” It also referred to the company’s dividend as the “most attractive” among peers. Analyst David Ross from the firm has upgraded the stock from “hold” to “buy.” He did however cut his price target on the stock from $127 to $121. He remarked that “the shares have been oversold and find it the most attractive dividend play in large-cap U.S. transportation.” Shares of UPS are still down about 7% in the last three months.

Access RDI’s United Parcel Service, Inc. Research Report at:
https://rdinvesting.com/news/?ticker=UPS

FedEx Corporation shares closed up a modest 0.45% on Tuesday with around 1.4 million shares traded. It was earlier this week that a Barclays analyst said that the company is likely to increase capital spending to compete against UPS. Barclays analyst Brandon Oglenski has said, “While bullish investors could initially be disappointed by another extended period of low cash conversion, we suspect a strong revenue outlook coupled with guidance for margin improvement should assuage many long-term fears.” It was in December that the company’s CEO of FedEx Express said, “I would just add that we are convinced that the additional spending is going to generate results well beyond the $1.2 billion to $1.5 billion in the marketplace.” Oglenski remarked, “We think FedEx management will be disinclined to risk losing momentum by foregoing investment given 80% cumulative revenue outgrowth and 470 [basis points] closure of the margin gap to UPS since 2000.” Barclays has a $310 price target on the stock and an “overweight” rating.

Access RDI’s FedEx Corporation Research Report at:
https://rdinvesting.com/news/?ticker=FDX

Our Actionable Research on United Parcel Service, Inc. (NYSE: UPS) and FedEx Corporation (NYSE: FDX) can be downloaded free of charge at Research Driven Investing.

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