Remember the days when analysts thought the rise of Amazon (NASDAQ:AMZN) would kill shipping companies like UPS (NYSE:UPS), and subsequently, UPS stock?
Instead, the novel coronavirus pandemic, and resulting rise in online shopping, is stretching delivery services to their limits. Experts are calling the coming Christmas season “Shipageddon.” Both UPS and rival FedEx (NYSE:FDX) are warning shippers most of their holiday capacity is already reserved.
This has done wonders for UPS stock, which has broken out of a five-year trading range. Shares are trading at $174. They’re up 47% for the year.
‘Laissez Les Bons Temps Rouler’
If you remember Mardi Gras, you know this means “let the good times roll.” Right now, the entire shipping sector is in vogue.
UPS stock is due to report earnings Oct. 28. Analysts expect net income of $1.80 per share on revenue