Better Buy: Tesla or UPS?
Tesla (NASDAQ: TSLA) and UPS (NYSE: UPS) might appear odd comparators, but their investment propositions share a few things in common. They are both cyclical companies. As such, their near-term earnings and cash-flow prospects were negatively impacted by rising interest rates. In addition, the investment theses for both rest on the answers to the same two questions: How will the company emerge from this period of economic uncertainty, and what is management doing to position it for growth?
Rising interest rates make the cost of borrowing more expensive. That's not good news for automakers, as most people take out loans to buy new cars. It's also not good news for package delivery companies like UPS because it curtails economic activity, resulting in lower demand for deliveries.
It also leads to customers looking to shift to cheaper options. I'll get back to this point regarding Tesla in a moment, but first, here's a look at how these phenomena have played out with UPS so far this year.
Source Fool.com
United Parcel Service Inc. Aktie
Durchaus positiv bewertet unsere Community derzeit United Parcel Service Inc. mit 19 Buy-Einschätzungen und 1 Sell-Einschätzungen.
Die Community erwartet für United Parcel Service Inc. ein Kursziel von 157 €, was eine deutliche Steigerung von über 20% gegenüber dem aktuellen Kurs von 114.24 € bedeuten könnte.
