FedEx and UPS Surge as Investors Pick Winners From Tax Overhaul
- Couriers, airlines, railroads gain from capital-expense change
- ‘One of the better environments I’ve seen,’ analyst says
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FedEx Corp. and United Parcel Service Inc. surged the most in more than a year on expectations that they’ll reap particularly big gains from the tax-overhaul package making its way through Congress.
The bills passed by the House and the Senate cut the corporate tax rate to 20 percent from 35 percent. Shipping companies like FedEx and UPS, as well as airlines and railroads, are especially well-positioned to benefit from a provision allowing them to expense capital equipment immediately, instead of over time.