If FedEx Soars, Will UPS Follow? - The Street Analysts expect big things from FedEx (FDX) when it reports quarterly results on Thursday -- no surprise in a recovering economy.
But the expectation raises a couple of questions. First, if FedEx does well, what does that mean for UPS(UPS)? Additionally, FedEx's labor classification remains a wild card, with Congress expected to decide whether the two companies should be treated the same under labor law.
Regarding UPS, Barclays Capital analyst Gary Chase wrote recently that while FedEx's fourth-quarter guidance will be the focus of the earnings call, "We think the call will shift investor focus towards earnings expectations for UPS -- we believe UPS earnings for the year have substantial potential upside, but especially in 1Q where we believe company guidance was very conservative."