This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer: I like FedEx over UPS

UPS (UPS - Get Report) may be a well-run company, Jim Cramer says, but he is concerned about the company's recent purchase of Dutch rival TNT. UPS paid a premium for TNT at a time when European markets are showing little growth.

"Is this the right time? And I say is this the right time because I am not hearing any growth out of Europe other than Germany. Now maybe the German business is so strong it makes senses. Maybe people feel like that UPS is taking a long view. I would not have done this deal unless I felt that maybe FedEx was going to buy them as a competitive deal," Cramer said.

Cramer says that a slowdown in Europe could hold back the American economy. By owning UPS, an investor is doubling down on that risk by being in both markets. FedEx (FDX - Get Report), without that European exposure is a better buy. Though he thinks UPS is a well-run company with a nice dividend, he says it has to come down.

At the time of publication, Cramer was long XXX.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
FDX $169.03 0.00%
UPS $97.43 0.00%
AAPL $135.53 2.20%
FB $81.91 0.00%
GOOG $555.37 0.00%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs