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United Parcel Aims to Expand in China with SF Holding Deal
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In a bid to expand further, United Parcel Service (UPS - Free Report) is aiming to enter into a joint venture with SF Holding, the holding company of SF Express, a Chinese package delivery company. The alliance, however, needs Chinese regulatory approval, before it becomes operational.
Once effective, the agreement will initially aim to ship goods from China to the US. Subsequently, it will expand operations further. The move is aimed at creating a powerhouse in the package delivery field as it will utilize SF Express’ vast Chinese network and United Parcel’s enviable network spanning over 200 countries and territories. We believe, this joint venture should find favor with Chinese customers as it will widen their options pertaining to international shipping apart from providing other benefits like increased visibility on the issue.
Notably, United Parcel’s move to join forces with SF Holding is a prudent one as the Chinese e-commerce market is highly lucrative, offering significant commercial potential with Alibaba Group Holding Limited (BABA - Free Report) leading the way.
In fact, United Parcel is making constant efforts to expand its international presence. The company acquired Freightex Ltd. early this year to establish its presence in UK . United Parcel’s increasing international focus can be gauged from the fact that in the first quarter of 2017, international package revenues improved 4.9% to $3,058 million. Also, export shipments improved 14% in the quarter. It should be noted that United Parcel, which has operating in China for many years, performed well in the country in the first quarter. In fact, its performance in the entire Asia Pacific market was highly encouraging.
United Parcel aims to compete more effectively with rivals like FedEx Corporation (FDX - Free Report) , by expanding its international presence. Amazon.com, Inc. (AMZN - Free Report) has also forayed into the package delivery market.
Price Performance
United Parcel shares have performed better than the Zacks categorized Transport-Air Freight industry in the last three months. The stock was down 0.9%, comparing favorably with the industry’s loss of 4% in the period.
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Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
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United Parcel Aims to Expand in China with SF Holding Deal
In a bid to expand further, United Parcel Service (UPS - Free Report) is aiming to enter into a joint venture with SF Holding, the holding company of SF Express, a Chinese package delivery company. The alliance, however, needs Chinese regulatory approval, before it becomes operational.
Once effective, the agreement will initially aim to ship goods from China to the US. Subsequently, it will expand operations further. The move is aimed at creating a powerhouse in the package delivery field as it will utilize SF Express’ vast Chinese network and United Parcel’s enviable network spanning over 200 countries and territories. We believe, this joint venture should find favor with Chinese customers as it will widen their options pertaining to international shipping apart from providing other benefits like increased visibility on the issue.
Notably, United Parcel’s move to join forces with SF Holding is a prudent one as the Chinese e-commerce market is highly lucrative, offering significant commercial potential with Alibaba Group Holding Limited (BABA - Free Report) leading the way.
In fact, United Parcel is making constant efforts to expand its international presence. The company acquired Freightex Ltd. early this year to establish its presence in UK . United Parcel’s increasing international focus can be gauged from the fact that in the first quarter of 2017, international package revenues improved 4.9% to $3,058 million. Also, export shipments improved 14% in the quarter. It should be noted that United Parcel, which has operating in China for many years, performed well in the country in the first quarter. In fact, its performance in the entire Asia Pacific market was highly encouraging.
United Parcel aims to compete more effectively with rivals like FedEx Corporation (FDX - Free Report) , by expanding its international presence. Amazon.com, Inc. (AMZN - Free Report) has also forayed into the package delivery market.
Price Performance
United Parcel shares have performed better than the Zacks categorized Transport-Air Freight industry in the last three months. The stock was down 0.9%, comparing favorably with the industry’s loss of 4% in the period.
Zacks Rank
United Parcel carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>