Fed Ex Still En Fuego
This stock is white hot -- Fed Ex (FDX) hit another 52 week high this morning.On Tuesday, we made the case that Fed Ex is nowhere near topping out:
UPS is down today, of course. On a pullback, Fed Ex is a no brainer.Fed Ex is an indisputable leader in the global business-to-business express delivery space.The firm is aggressively expanding, cutting costs, and doing just about everything a strong operation is supposed to be doing to improve profitability.
Although UPS (UPS) isn't as levered to the air cargo & freight business (which demands higher Cap Ex and fluctuates accordingly with fuel spikes), it's clear that investors are optimistic about Fed Ex's ability to compete with its long time arch-nemesis, even as the latter sustains its higher margin categories and keeps the European market on lock-down. In any event, Fed Ex's chart looks better, corroborating our feeling that stronger bullish sentiment exists among the Fed Ex crowd and that there is less upside in UPS.
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