2 Shipping Stocks Facing Holiday Headwinds

FDX and UPS tend to struggle in December, historically

Managing Editor
Dec 1, 2023 at 12:00 PM
facebook X logo linkedin

You would think that with the holiday season upon us and retail spending ramping up, that December would be time to shine for shipping giants FedEx Corporation (NYSE:FDX) and United Parcel Service Inc (NYSE:UPS). History says not so fast, with FDX and UPS among the 25 worst-performing stocks on the S&P 500 Index (SPX) in December, looking back 10 years.

Per the chart below from Schaeffer's Senior Quantitative Analyst Rocky White, FedEx stock averages a December loss of 3.7% over the last 10 years, finishing the month with a positive return only three times. UPS, meanwhile, averages a monthly loss of 2.6% and has finished December positive only 30% of the time in the last decade.

Worst Stocks DEc

FedEx stock was last seen up 0.6% to trade at $261.74, adding to its 51% year-to-date lead. UPS is 0.6% higher today to trade at $152.58 but is off by 12.4% in 2023, and is staring up at its 100-day moving average. It's also worth noting that FedEx and UPS stock have a 14-day Relative Strength Index above 70, firmly in 'overbought' territory, which could indicate a short-term breather on the charts.

Both stocks boast cheap options at the moment. FDX and UPS' respective Schaeffer's Volatility Index (SVI) readings of 21% and 20% sit in the bottom 15th percentile all other readings in their annual range, implying that options players are pricing in relatively low volatility expectations at the moment. 



Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI