Better Buy: FedEx Corp. vs. United Parcel Service
FedEx (NYSE: FDX) and United Parcel Service (NYSE: UPS) changed the world by making rapid delivery of goods a reality. Demand for fast shipping has skyrocketed as e-commerce has grown, and both companies have worked hard to capture their fair share of the market. But which of these transportation giants' stock is likely to be the smarter investment under current conditions? Let's compare.
FedEx and UPS are in the same business, but their share prices have behaved quite differently over the past year. FedEx has shot higher by 34% since July 2016, while UPS has posted only a 3% rise over the same period.
Even with the big boost to its stock price, FedEx still looks like a better value using simple metrics. It currently trades at a trailing earnings multiple of 19, while UPS shares sit at 29 times trailing earnings. Even when you consider forecast earnings, FedEx retains an advantage: Its forward multiple of 14 is considerably below UPS' 17.5. Based on both stock momentum and valuation, FedEx looks like a more promising stock.
Source: Fool.com
Fedex Corp. Stock
With 41 Buy predictions and not a single Sell prediction Fedex Corp. is an absolute favorite of our community.
As a result the target price of 293 € shows a slightly positive potential of 6.49% compared to the current price of 275.15 € for Fedex Corp..
