BUZZ-UPS stumbles, FedEx holds firm in 2025

Reuters2025-12-31
BUZZ-UPS stumbles, FedEx holds firm in 2025

** U.S. parcel carriers see contrasting fortunes in 2025

** UPS UPS.N shares slide roughly 21% YTD; rival FedEx FDX.N manages modest gain of about 3.5% over same period

** UPS has been slashing millions of margin dilutive packages from its delivery network and cutting tens of thousands of jobs as part of a broader push to rein in costs and prioritize higher-margin businesses

** FedEx has also been pursuing a multi-year cost overhaul, aiming to reduce aircraft idling, shuttering sites and integrating its formerly separate Ground and Express operations

** Weak demand driven by U.S. trade policy changes and removal of tariff-free treatment for many direct-to-consumer shipments weighed on both companies

** UPS trades at a forward 12-month PE ratio of 14.22, while FDX sits slightly higher at 14.48; both well below industry median of 19.33

** 13 of 30 brokerages rate UPS "buy" or higher, 14 "hold" and 3 "sell"; median PT is $104

** 18 of 30 brokerages rate FDX "buy" or higher, 10 "hold" and 2 "sell"; median PT is $313.5

(Reporting by Abhinav Parmar in Bengaluru)

((Abhinav.Parmar@thomsonreuters.com;))

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