Shares of United Parcel Service (NYSE: UPS) have sputtered through most of 2022, weighed down by concerns about a slowing economy. Shares of UPS gained 13.1% in November, according to data provided by S&P Global Market Intelligence, on investor hope that the worst is behind us. Efforts in the U.S. and overseas to battle inflation are showing signs of slowing the global economy, which would lead to less demand for logistics and shipping services.
FedEx (NYSE: FDX) sent investors scrambling for the exits back in September, with the shares losing one-quarter of their value in a single trading day after the transportation giant warned a global economic slowdown was taking its toll. In November, FedEx said the restructuring plan put in place in response to the slowdown was proceeding as planned. FedEx by its nature is closely linked to the health of the global economy.
Shares of United Parcel Service (NYSE: UPS) were climbing today after the transportation and logistics powerhouse got an upgrade from Deutsche Bank. Last night, Deutsche Bank analyst Amit Mehrotra raised his rating on UPS from hold to buy and lifted his price target from $197 to $220. While volume growth may be sluggish, he thinks that productivity initiatives will improve margins and help the company gain market share even in a downturn.