FedEx and UPS gain as Stifel highlights potential benefits from port strikes
Shares of parcel service providers FedEx Corporation (NYSE:FDX) and United Parcel Service (NYSE:UPS) saw gains in today's trading session.
FedEx shares rose nearly 3%, while UPS gained more than 1%, responding to ongoing U.S. port strikes that are disrupting traditional shipping routes.
Investment firm Stifel noted that international airfreight capacity providers like FedEx and UPS are the most "obvious beneficiaries" of the port disruptions.
The strikes have the potential to shift freight demand from sea to air, offering a boost to companies with strong air logistics capabilities.
According to LSEG data, out of 32 brokerages covering FedEx, 22 have rated the stock as "buy" or higher, while eight recommend "hold" and only two rate it as "sell" or lower.
The median price target for FedEx is set at $310.50.
As of the last closing, FedEx shares have appreciated by 5% year-to-date, contrasting with UPS shares, which have declined by 14% over the same period.
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