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Industry Focus

Energy: Can UPS and FedEx Deliver for Retailers and Investors This Holiday Season

Industry Focus

The Motley Fool

Interview, Money, Consumergoods, Business, Businessnews, Ceo, Technology, Investing, Stocks, Energy, Fool, Financial, Economy, Healthcare, News, Banking, Motley, Tech, Business News, Investments

4.6854 Ratings

🗓️ 7 December 2017

⏱️ 18 minutes

🧾️ Download transcript

Summary

UPS, FedEx, and USPS will deliver an estimated two billion packages during the holiday season. We discuss how they make this happen, their past and current struggles to do so profitably, and what this all means for retailers, consumers, and investors.

Transcript

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0:00.0

Welcome to Industry Focus, the show that dives into a different sector of the stock market every day.

0:06.6

Today we're talking Energy and Industrials. It's Thursday the 7th of December and we're going to be discussing

0:11.2

UPX and FedEx.

0:13.0

Joining me on Skype is Senior and Motley 4 contributor,

0:15.0

Adam Levine Weinberg.

0:16.0

Adam, thank you so much for joining me today.

0:18.0

Thanks for having me on your show.

0:20.0

Well, as I said today, we're going to be talking about UPS and FedEx. We thought that as we were well into the holiday season

0:26.0

It would be seasonally appropriate to talk about two companies that make a lot of our online shopping and gift giving possible

0:36.8

The number of packages that get sent during the season is just phenomenal between Thanksgiving and Christmas, UPS, FedEx and United States Postal Service expect 2 billion packages.

0:42.1

They expect to deliver 2 billion.

0:44.8

And not only is that insane, but it's also 70% higher than it was in 2010.

0:50.5

So that's a lot of gifts, a lot of socks that's getting delivered.

0:55.0

So between the two companies we're talking about, they're obviously pivotal to all this activity.

1:00.0

And if you're, as a listener, I'm not familiar familiar with them FedEx is the world's largest

1:04.5

express delivery firm they pioneered overnight delivery in the 70s and are known for their

1:09.1

huge air fleet among other things its ticker symbol is FDX. United Parcel Service, unsurprisingly their ticker is UPS,

1:17.0

are the largest player. They deliver on average 19 million packages a day across the globe, and they handle about 40% more volume of FedEx.

1:25.7

So Adam, management of both of these companies are probably super laser focused on the holiday

1:31.2

season right now which hasn't always been kind to them.

1:34.1

What do you reckon they're kind of prepping for?

1:37.0

Yes, so one of the issues that both FedEx and UPS have had over the years is that they need to

...

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