Union Labor Helped UPS. Now It Could Hurt. What to Buy Instead. - Barron's
Stock in United Parcel Service caught a downgrade on Monday. The shipping giant has done a good job managing wages being pushed up by inflation—maybe too good. Now, the benefits from its better cost structure are reflected in its stock price and better returns can be found elsewhere.
Deutsche Bank analyst Amit Mehrotra downgraded his rating in UPS (ticker: UPS) stock to Hold From Buy. His target price moved to $221 from $253. His preferred choice: FedEx (FDX).
Mehrotra’s downgrade has a lot to do with just how well UPS stock has performed since March 2020, when he rated shares Buy. Since then, the stock is up about 130%; FedEx stock has gained about 70% over the same span. The S&P 500 and Dow Jones Industrial Average are up 49% and 31%, respectively.
Today, the analyst still has a Buy rating for FedEx—and raised his price target to $299 from $280 on Monday.
Stock in United Parcel Service caught a downgrade on Monday. The shipping giant has done a good job managing wages being pushed up by inflation—maybe too good. Now, the benefits from its better cost structure are reflected in its stock price and better returns can be found elsewhere.
Deutsche Bank analyst Amit Mehrotra downgraded his rating in UPS (ticker: UPS) stock to Hold From Buy. His target price moved to $221 from $253. His preferred choice: FedEx (FDX).
Mehrotra’s downgrade has a lot to do with just how well UPS stock has performed since March 2020, when he rated shares Buy. Since then, the stock is up about 130%; FedEx stock has gained about 70% over the same span. The S&P 500 and Dow Jones Industrial Average are up 49% and 31%, respectively.
Today, the analyst still has a Buy rating for FedEx—and raised his price target to $299 from $280 on Monday.
