were on the move Monday after picking up upgrades from Wolfe Research analyst Scott Hand, who raised his ratings for both to the equivalent of Buy from Hold.
UPS (ticker: UPS) stock was up about 3.9% in midday trading. FedEx (FD) shares were up 3.5%. The S&P 500 and Dow Jones Industrial Average, for comparison, are up 0.4% and 0.8% respectively.
Right now, more than 70% of analysts covering FedEx rate shares Buy. A year ago, the Buy-rating ratio was closer to 50%. The average Buy-rating ratio for stocks in the S&P 500 is roughly 55%.
The average analyst price target is about $325, or 12% higher than recent trading levels. A year ago, the average analyst price target was about $140 a share.
UPS isn’t as popular with analysts as FedEx. Just over 50% covering the company rate shares Buy. About a year ago, about 40% of analysts rated shares Buy.
The average analyst price target is about $210, about 3% higher than recent levels. A year ago, the average analyst price target was about $100 a share.
Valuation might be a reason for the different takes. UPS is trading for roughly 19 times estimated 2021 earnings; FedEx is trading for less than 17 times.
FedEx is more popular with the Street, but UPS stock has the upper hand in 2021— and is up 24% year to date, jumping 10% on April 27 after it reported blowout first quarter numbers. FedEx stock is up about 13% year to date, similar to gains of the S&P 500 and the Dow industrials.
Both stocks had a great 2020. UPS share rose about 44%; FedEx stock gained about 72%.
Write to Al Root at [email protected]