4 Things You Didn't Know About FedEx Corporation
It's easy to quickly conclude that FedEx Corporation (NYSE: FDX) is just a smaller version of United Parcel Service (NYSE: UPS) and that the two companies are essentially interchangeable, except for FedEx's greater emphasis on express deliveries. However, a closer look at the facts reveals some key differences. Here's a look at some things that might make you think differently about FedEx.
As the name suggests, FedEx is best known for its express deliveries, but in the last decade, it's made more income from its slower, less expensive ground deliveries than it has from its express segment. Adding up the total segment operating income from express in the last 10 years produces $15.4 billion compared to $16.3 billion from ground.
As you can see below, ground took the lead following the recession of 2009 -- as customers shifted to slower, less expensive deliveries -- but express is currently the biggest profit generator again. The reasons for this are discussed elsewhere. Going forward, the express segment is going to drive profits, not least because the integration of TNT Express is expected to improve express operating income by $1.2 billion to $1.5 billion in 2020 from 2017.
Source: Fool.com
United Parcel Service Inc. Stock
We see a rather positive sentiment for United Parcel Service Inc. with 14 Buy predictions and 1 Sell predictions.
With a target price of 161 € there is a positive potential of 24.69% for United Parcel Service Inc. compared to the current price of 129.12 €.
