UPS: The Holiday Shopping Season Looks Bright
UPS (NYSE:UPS) released a statement today saying that it expects a “solid” holiday season this year. The shipping giant is estimating that the number of packages shipped in the week before Christmas will be up 6% from last year. The company also announced that it will be hiring 55,000 seasonal workers to handle the increased traffic, which is a 10% increase from the 2010 holiday season.
BB&T Capital Markets analyst Kevin Sterling says that the increase in hiring shows “the strength of online shopping despite the softness in the economy,” per Bloomberg. Sterling currently lists UPS as a “buy” recommendation.
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UPS (NYSE:UPS) expects to see five days this year where daily shipping volume will be around 25 million packages, whereas last year the company saw just one. Competitor FedEx (NYSE:FDX) also forecasts a busy holiday season as they announced last month that they will hire 20,000 seasonal employees, an increase of 18% from last year.
Here’s how these two shipping companies closed today:
- United Parcel Service, Inc. (NYSE:UPS): The shares recently traded at $70.46, up $0.47, or 0.67%. Its market capitalization is $69.11 billion. They have traded in a 52-week range of $60.74 to $77.00. Volume today was 3,102,288 shares versus a 3-month average volume of 6,146,130 shares. The company’s trailing P/E is 17.10, while trailing earnings are $4.12 per share. The company pays a dividend of $2.08 per share for a dividend yield of 3.00%. About the company: United Parcel Service, Inc.(NYSE:UPS) delivers packages and documents throughout the United States and in other countries and territories. The Company also provides global supply chain services and less-than-truckload transportation, primarily in the U.S. UPS’s business consists of integrated air and ground pick-up and delivery network Get the most recent company news and stock data here >>
- FedEx Corporation (NYSE:FDX): The shares recently traded at $81.93, down $0.08, or 0.1%. Its market capitalization is $26.05 billion. They have traded in a 52-week range of $64.07 to $98.66. Volume today was 1,867,028 shares versus a 3-month average volume of 3,448,140 shares. The company’s trailing P/E is 16.96, while trailing earnings are $4.83 per share. The company pays a dividend of $0.52 per share for a dividend yield of 0.60%. About the company: FedEx Corp. delivers packages and freight to multiple countries and territories throught an integrated global network. The Company provides worldwide express delivery, ground small-parcel delivery, less-than-truckload freight delivery, supply chain management services, customs brokerage services, and trade facilitation and electronic commerce solutions. Get the most recent company news and stock data here >>