UPS is Unions and FDX is mostly non-union, I try to stay away from union companies trading the markets.
If your valuations are based for a long term hold than that has little to no influence on their upcoming ER which was only 2-3 months prior. Yeah, better to play it safe imo. They missed on their last ER by a small number yet the stock fell near 52w lows.
It was an 11% miss. Not small. Revenue was up 15% though. The problem was they were understaffed and had to sub out a substantial amount of their ground delivery. That's not a bad problem to have really, they'll fix it with higher wages which is why they revised full year earnings down. One problem I do see however was the cost of fuel in Sept/Oct/Nov., for most of those months it was up it was up over 20% from the previous quarter. That said, they are running on all 8 cylinders and shipping prices have gone up, especially on international cargo. One has to think that with with ocean shipping so bottle-necked they can pretty much name their price for high priority cargo. Supply and demand. So whatever, we'll see. If I don't like what I see tomorrow and Thursday we'll revisit, but for now I like it for the earnings play. Obviously most don't, or I think we'd see more volume. The Street will certainly need a more positive outlook that any improvements made are sustainable. At a PE of 12, what's the worst that can happen? $215? It'll bounce back. It already has to some extent, but it can always revisit I suppose. The only thing I don't like that I missed, was that sharp spike in fuel albeit coming down some. That could sting if they didn't foresee that in their revision.
Covid #'s soaring and this thing is down 15% in 4 days. I thought increased air travel and more testing was supposed to be good for this stock. Told ya not to touch these cheap stocks. Probably heading lower too.