UPS and FedEx Pick Up Momentum as Economy Rebounds

cheryl

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UPS and FedEx Pick Up Momentum as Economy Rebounds - Investor Place

In the wake of strong earnings and a recovery-fueled boost in shipments, there are more bulls chasing after United Parcel Service (NYSE: UPS) and FedEx (NYSE: FDX) these days than you’d find at the encierro in Pamplona. But despite the positive outlook, FedEx and UPS still will have to navigate the uncertainty of increasingly expensive fuel and an antitrust lawsuit to ensure that share prices don’t get gored in 2011.

It’s no secret that both transport companies’ earnings have risen dramatically since last July as the strengthening economy boosted shipments of goods. As the economy continues to dig out of the recession, investors are likely to see significant upside potential with both companies’ shares in 2011 — even though UPS and FedEx stock already has risen by 26% and 12% respectively over the past year.

Analysts agree that UPS and FedEx likely will have a good year in 2011. UPS is forecasting record earnings of as much as $4.35 a share, which if achieved would be 22% above last year’s numbers. FedEx, meanwhile, also is looking at higher earnings in the range of $4.80-5.25 for 2011.
 
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