Friday, May 13, 2016

United Parcel Service, FedEx Corporation, Fuel Surcharge

How should we think about oil prices and profitability at logistics companies like United Parcel Service (NYSE:UPS) and FedEx Corporation (NYSE:FDX)? The answer will help determine your investing position in response to oil price movements. For example, if you think oil prices are likely to bottom (recall that a move from, say, $30 to $50 is actually a 66% hike in prices) in 2016, then is it safe to assume UPS and FedEx are automatically a buy now?
Let's take a closer look at the underlying considerations.
WTI Crude Oil Spot Price Chart

READ THE FULL EQUITY RESEARCH REPORT LINKED