Why UPS Stock Is Outperforming FedEx in 2019

cheryl

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Why UPS Stock Is Outperforming FedEx in 2019 - Motley Fool

Investors had quite different expectations for the two shipping and logistics giants.

There's been a huge divergence in the fortunes of United Parcel Service and FedEx over the past year. UPS's stock has outperformed its rival's by over 30% in the last 12 months, and its 18% rise so far in 2019 stands in stark contrast to FedEx's decline of around 2%. Given that, the natural question for investors is, why is UPS significantly besting FedEx in terms of share price performance?

It's not just about end markets

Both companies are feeling the chill of slowing global trade growth, which has negatively impacted international shipping volumes, but it's here where the similarities end in 2019. Whereas FedEx's management has been highly vocal in blaming the impact of weakening end markets, UPS's has taken it on the chin. So what's the key difference between the two?
 
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