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Shares of FedEx were moving higher after the bell on Thursday after a solid fiscal third-quarter report, and it is catching up to rival UPS , according to the traders on CNBC’s ” Fast Money .” The shipping company reported $3.41 in adjusted earnings per share, above the $2.73 per share expected by analysts, according to Refinitiv. Revenue of $22.17 billion was short of expectations, however, but the company did raise its earnings outlook. FedEx rose 11% in extended trading, while UPS added 3%. Tim Seymour, who has positions in both stocks, said on ” Fast Money ” that at the moment he prefers FedEx because of relative valuation and the current economic landscape. “The multiple is a little more attractive when you consider where we are with markets right now,” said the chief investment officer of Seymour Asset Management. “And that inventory bottoming process is in their favor.” Prior to this latest earnings report UPS had a forward price to earnings ratio of 15.8, while FedEx was at 12.0, according to FactSet. Karen Finerman, CEO of Metropolitan Capital Advisors, said she currently owns UPS but sees a good argument for FedEx. “They deserve to make some of that [valuation gap] up. And one thing FedEx has is a little more international exposure, which is probably a good thing. To the extent that China opens, they have a little more exposure than UPS outside the United States,” she said. Finerman did say she is sticking with UPS, however, making it her final trade of the day.
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