Is UPS Stock a Buy After FedEx's Dire Outlook?
Over the last three years, United Parcel Service (NYSE: UPS) has produced a higher total return than the S&P 500 and the industrial sector. And even after its 4.5% decline on Friday in response to a bleak outlook from FedEx (NYSE: FDX), UPS stock is barely underperforming the market this year.
The issue is that UPS last reported earnings in late July. And if the industry is as bad as FedEx is making it out to be, then there's a risk that UPS will cut its full-year guidance and report worse-than-expected results when it announces earnings in late October.
Here's why UPS remains a buy despite FedEx's warnings, and why investors would do well not to assume that UPS will cut its guidance to the same degree as FedEx did.
Source Fool.com
