Every year, millions of us ship gifts all over the world for December holidays.
In 2023, for example, UPS delivered 5.7 billion packages for total revenue of about $91 billion. FedEx delivered 3.9 billion for total revenue of about $90.15 billion. And, as expected during the holidays, shipping volumes can be 30% to 40% higher than other times of the year.
Also, according to TheStreet.com, “UPS and FedEx are pulling out all the stops to make sure they get your order. The two are going head to head on price, undercutting one another, especially when it comes to luring orders from smaller businesses and merchants. The 2024 holiday season marks the first time both UPS and FedEx are offering discounts to smaller merchants usually reserved for bigger e-commerce players.”
That being said, you may want to jump into both delivery stocks.
UPS (SYM: UPS)
With the 2025 holiday season here, keep an eye on shipping stocks like UPS (SYM: UPS).
As we’ve seen in most holiday seasons, the stock tends to push higher, as millions of us ship gifts all over the world. We expect to see more of the same this year with UPS, especially as it begins to pivot from $120 support. Last trading at $137.54, we’d like to see it retest $150 as we get deeper into the holiday season.
Plus, while you wait for further upside, you can also collect its $1.64 per share quarterly dividend, which will be paid on December 5 to shareholders of record as of November 18. Also, earnings haven’t been too shabby. UPS EPS of $1.76 beat by 14 cents. Revenue of $22.2 billion, up 5.4% year over year, beat by $70 million.
And, as noted by CEO Carol Tome, “After a challenging 18-month period, our company returned to revenue and profit growth,” said Carol Tomé, UPS chief executive officer. “Peak season is nearly upon us, and we are ready to deliver another successful holiday season and continue the progress we demonstrated in the third quarter.”
FedEx (SYM: FDX)
FedEx just ran from about $260 to a recent high of $305, but it could push even higher ahead o of the holiday rush and its next batch of earnings. The company is also getting set to pay a dividend of $1.38 a share on January 3 to shareholders of record as of December 9.
Better, analysts at Citi just raised their price target on FDX to $331 from $301 with a buy rating. Barclays also raised its target to $365 from $350 with an overweight rating. The firm “says transportation equities could benefit from lower U.S. corporate tax rates following the election of Donald Trump,” as noted by TipRanks.com.
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