Have UPS and FedEx Really Turned the Corner?
It's been an interesting year for package delivery giants UPS (NYSE: UPS) and FedEx (NYSE: FDX). They've gone from being seen as victims of the COVID-19 pandemic to being viewed as among its few long-term beneficiaries, and their stocks have moved accordingly. But have they turned the corner in terms of generating margin expansion alongside volume growth from e-commerce deliveries?
Shareholders have watched as UPS and FedEx have outperformed the S&P 500 this year; the stocks are up 37% and 50%, respectively, compared to 6.1% for the index. Those are startlingly strong moves, and show how far we've come since the dark days of March, when the market feared that the global economic slump caused by efforts to stem the pandemic would lead to dramatic revenue and earnings declines for all transportation companies.
Image source: Getty Images.
Source Fool.com
