Where Is United Parcel Service Heading in 2017? - Motley Fool
It's no secret that United Parcel Service, Inc and FedEx Corporation are key beneficiaries of the e-commerce revolution. While that's good news from a revenue growth perspective, it's not necessarily a good thing from a margin and cash flow perspective. Both companies are facing margin pressure from growing e-commerce deliveries, and UPS in particular is having to ramp up capital expenditures and costs in order to support future growth.
In this context, let's take a look at what's going on at UPS and how it affects the investment proposition.
It's no secret that United Parcel Service, Inc and FedEx Corporation are key beneficiaries of the e-commerce revolution. While that's good news from a revenue growth perspective, it's not necessarily a good thing from a margin and cash flow perspective. Both companies are facing margin pressure from growing e-commerce deliveries, and UPS in particular is having to ramp up capital expenditures and costs in order to support future growth.
In this context, let's take a look at what's going on at UPS and how it affects the investment proposition.