Shippers suggest recovery just getting started
Hard to ignore improving data points: Results from our survey of more than 300 parcel shippers are consistent with many key themes of our freight thesis and reinforce that recovery is under way. We continue to believe EPS estimates are too low across freight as both volume and operating leverage are likely to surprise. In parcel, we admit a fair amount of good news is now in the stocks, particularly regarding international airfreight. If margins at FDX and UPS can return to prior peak levels within the next few years, however, a notable upside is still in the shares from current levels.
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