United Parcel Service and FedEx Under Review: Industry on a Growth Trajectory

Feb 19, 2013, 08:00 ET from StockCall.com

LONDON, February 19, 2013 /PRNewswire/ --

Recently announced dividends by Air freight and logistics companies give a picture of increased profits,an indication showing that the companies are putting behind the economic upheaval which did not spare any industry. United Parcel Service Inc. (NYSE: UPS),a global leader in logistics,has entered a strategic alliance with Jabil in reverse logistics services. FedEx Corporation (NYSE: FDX),on the other hand,is looking for expansion in Europe. StockCall has released free charting and technical research on these two aforementioned companies. Register to read these reports at


UPS Joint Efforts for providing Global Reverse Logistics service

UPS has announced a strategic collaboration with Jabil Circuit Inc. for Global Reverse Logistic Services for repair and return programs for hi-tech original equipment manufacturers, service providers and enterprises on a global scale. This will provide a turn- key supply chain model that will drive efficiencies and enhance customer services. Sign up for the free report on United Parcel Service Inc. at


UPS Future outlook

UPS has delivered its best adjusted EPS with a strong free cash flow even in weaker-than-expected global economic conditions. A strong demand from Asia and Europe has led to an increase in average daily export volumes. 2013 looks like a promising year with stronger economic outlook and the UPS business model will deliver consistent results, with operating profit growth in all segments.

UPS is currently at $83.14 near its 52-week high $84.11 with an EPS of $0.80 and an indicated Annual dividend of $2.48 per share. Its P/E ratio is at 104.50

Potential Acquisition by FedEx in Europe

FedEx is looking for potential M&A in Europe as it continues to aim for expansion in the region. A potential target is TNT Express. UPS was planning a bid on TNT which it scrapped. Since then the valuations of TNT have bottomed down. FedEx is expected to make an offer for TNT, but will wait and see if the operational and financial health of the company would deteriorate further. FedEx, at this point, does not have enough cash to make a buy this huge, so the best option for it would be to wait out till TNT becomes more affordable. FedEx Corporation free technical report can be accessed by signing up at


FedEx is also looking to increase its profits by $1.7 billion in next three years. Its options to meet this goal are job elimination and replacement of its aging fleet of aircrafts which is again a huge capital expenditure.

FedEx is currently trading near its 52-week of $107.50, that is at $106.90. In 2013, the company has already paid $0.28 per share as dividends. Its EPS is at $6.23 and P/E ratio is 17.09.

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