The Only Two Stocks Worth Owning This Holiday Season
More online shopping means more package deliveries.
And with more package deliveries comes higher returns for smart investors that jumped into two stocks that control 90% of the delivery market.
When Adobe Digital Insights (ADI) announced that online holiday sales could jump 11% to $891.6 billion between November 1 and December 31, 2016, the only two stocks in your sack should have been FedEx (FDX) and UPS (UPS).
According to ADI:
"Black Friday will set record sales, passing $3 billion for the first time, and Cyber Monday will be the largest online shopping day in history. Black Friday will reach $3.05 billion (11.3% YoY growth), and Cyber Monday will hit $3.36 billion in online sales (9.4% YoY growth)."
In fact, since November 2016 UPS soared from a low of near $106 to more than $116 in just weeks. FedEx jumped from about $172 to more than $190.
While both could pullback on technical over-extensions, we see further near-term upside, as online sales absolutely exploded.
Cyber Monday sales hit $3.45 billion in online sales, bettering expectations with 12% year over year growth. That’s the largest online sales day in history.
Black Friday sales came in roughly $110 million lower than that – a true success.
That leaves FDX and UPS to deliver in many cases.
UPS expects to handle about 750 million peak parcels this year—a jump of about 17% year over year. FDX sees a 10% increase likely in packages over the 325 million packages delivered in 2015.
That news alone could lead to further, explosive upside in both stocks, especially for FDX where online sales account for up to 50% of its business.
While it’s smart to get excited as both stocks hit multi-year highs now, be cautious.
As the holiday season begins to fade, so do these two stocks.
In fact, over the last three years, UPS has a tendency to slip between $11 and $15 a share. FDX also slips shortly after the holiday season, as well. Just be sure to be in a position to benefit from the fall before the start of the year.