Long Term, Post Office Troubles Bound To Benefit FedEx And UPS Shares

Discussion in 'The Latest UPS Headlines' started by cheryl, Sep 9, 2012.

  1. cheryl

    cheryl I started this. Staff Member

    Long Term, Post Office Troubles Bound To Benefit FedEx And UPS Shares - Seeking Alpha

    The U.S. Postal Service is in dire straights, and this, ironically, is both good and bad news for the two big shipping companies that compete with it. But as USPS takes on cost-cutting measures that will make its own services crappier, the long-term outlooks for FedEx (FDX) and United Parcel Service (UPS) are looking better and better.

    Most analysts that follow the sector recommend both shares, although few expect a quick recovery in share prices. FedEx is considered the more undervalued of the two, but UPS comes with a 3.1% dividend yield. They're liked because they're large, well-run companies that dominate their competition in a business that will, at some point, rebound, with or without the U.S. Postal Service.