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Morgan Keegan's Arthur Hatfield takes a shine to FedEx (FDX +7.1%) on the heels of the firm's...

  • Thursday, December 15, 2011, 2:14 PM ET
    Morgan Keegan's Arthur Hatfield takes a shine to FedEx (FDX +7.1%) on the heels of the firm's FQ2 beat. He says the trend of consumers moving away from brick-and-mortar stores to shop online will benefit both FDX and rival UPS - but he rates FDX higher. "Fedex has a little more leverage into a recovery than UPS, so we should see a much bigger step up in earnings over the next couple years, and as such the stock should outperform."
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This news story has 3 comments:

  •  
    Corporations are people (per Mitt Romney) but they aren't he's or she's.
    15 Dec 2011, 02:22 PM Reply Like
  •  
    If it wasn't for sucking off the US post office for results, it would have been a bad quarter, all other volumes were down year over year..What you looking at Bro?
    16 Dec 2011, 06:17 AM Reply Like
  •  
    Neither FDX or UPS are sucking off the USPS, they are utilizing the assets they have available to them in the most efficient way possible. This is directly in line with creating shareholder value. The USPS alone could not deliver all the residential packages the market currently creates, their network is not designed to handle it. These two companies do the heavy lifting and rely on the USPS to make the final delivery as they visit every address in the US every day. Due to this "leaching of business" as some say, online retailers are able to offer free shipping with full tracking and reliable time in transit. In the end the consumer wins, USPS keeps delivery density and both companies can maintain profit margins acceptable to share holders.
    18 Dec 2011, 03:34 PM Reply Like
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