UPS-FedEx Ratio Offers Bet on U.S. Economy: EcoPulse - Bloomberg
After trailing FedEx Corp. (FDX) for more than a year, United Parcel Service Inc. (UPS) is poised to narrow the performance gap as investors eye the laggard stock as a bet on U.S. economic growth.
UPS, the world’s largest package-delivery company, is up 15 percent since May 2, 2013, compared with a 75 percent rise for FedEx. The ratio of UPS to FDX is near the lowest level since the Atlanta-based company went public in 1999, so now could be a “good time to buy” UPS stock, particularly ahead of the holidays, said Christian Bertelsen, chief investment officer of Global Financial Private Capital, a Sarasota, Florida-based wealth manager with $3.9 billion in assets.
Gains for UPS probably will be bigger later this year amid prospects for a better shopping season, Bertelsen said. The company also is expanding outside the U.S., so all this presents an opportunity for investors looking for contrarian strategies, particularly after the stock’s relative weakness.
After trailing FedEx Corp. (FDX) for more than a year, United Parcel Service Inc. (UPS) is poised to narrow the performance gap as investors eye the laggard stock as a bet on U.S. economic growth.
UPS, the world’s largest package-delivery company, is up 15 percent since May 2, 2013, compared with a 75 percent rise for FedEx. The ratio of UPS to FDX is near the lowest level since the Atlanta-based company went public in 1999, so now could be a “good time to buy” UPS stock, particularly ahead of the holidays, said Christian Bertelsen, chief investment officer of Global Financial Private Capital, a Sarasota, Florida-based wealth manager with $3.9 billion in assets.
Gains for UPS probably will be bigger later this year amid prospects for a better shopping season, Bertelsen said. The company also is expanding outside the U.S., so all this presents an opportunity for investors looking for contrarian strategies, particularly after the stock’s relative weakness.
