UPS to Gain on FedEx Earnings Raise
UPS should see a decent gain for our Net Payout Yield and Hedged Growth portfolios. They still sport a 3% dividend yield plus expected stock buybacks making a very attractive investment even with further gains. Significant growth in international markets will be a constant theme that our stock picks will be aligned to take advantage.
“FedEx will exceed previous earnings guidance in the second quarter primarily due to better-than-expected growth in FedEx International Priority® and FedEx Ground volumes, coupled with the benefits of our continuing cost control programs,” said Alan B. Graf Jr., FedEx Corp. executive vice president and chief financial officer. “Year-over-year growth in our U.S. overnight express and FedEx International Priority services increased each month during the quarter, aided by inventory restocking and our successful sales efforts. Demand for our international services has improved significantly since the first quarter, particularly in Asia and Latin America.”