What FedEx’s Earnings Mean for UPS Investors

Solid earnings report from FedEx (NYSE:FDX) caused its shares to rise sharply and that is probably why (NYSE:UPS) shares rose on the first trading day after the earnings were released. Such events are common in investing, and a deeper look at earnings reports suggests some positive takeaways for UPS investors. Here are five that UPS investors should consider.

A key element of UPS’s investment strategy is the assumption that sales volumes, particularly in the U.S. domestic market, will begin to grow again in the second half of the year – UPS’s fiscal year aligns with the calendar year, while FedEx’s ends at the end of May.

UPS management believes second-quarter average daily growth in U.S. domestic volume will be slightly positive year over year in the second quarter through the end of June. The question remains whether UPS will report that, but the fact that U.S. volume declines are moderate at FedEx is a positive sign.

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Source: Fool.com