Are FedEx and UPS Still a Good Value?

FedEx (NYSE: FDX) and UPS (NYSE: UPS) are on a roll. Both stocks have surged in 2020, and analysts and investors are getting excited about the companies' long-term growth prospects. Let's take a closer look at what's going on and whether the strong runs can continue.

The stocks have risen due to a combination of factors. First, the market has recognized that the COVID-19 pandemic has accelerated the shift toward e-commerce purchasing.

Second, the slow recovery in the economy is leading to a gradual improvement in both transportation companies' business-to-business (B2B) revenue -- something likely to help margins, as B2B deliveries tend to be more profitable.

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Source Fool.com