Investment opportunities in online logistic providers
The successful deployment of any online strategy requires external elements such as transportation and payment systems. Transportation facilities are key especially for international deliveries which require customs services. Given the expected online and mobile sales increase, a similar increase in small-package deliveries should occur in tandem. There are a few names to look at:
| Company | Ticker | Sector | Upside Potential | Sharpe (FY01) |
| DeutschePost DHL | DPWGn | Delivery Services | 12 % | 4.92 |
| Investment case: This former state-run postal operator has become one of the world’s largest cross-border logistics operators. Increased online activity should translate into higher sales volumes, therefore DHL is among one of the best-positioned firms to benefit from this growth. | ||||
| Company | Ticker | Sector | Upside Potential | Sharpe (FY01) |
| United Parcel Services | UPS | Delivery Services | 6 % | 8.13 |
| Investment case: UPS is a global provider of delivery services (air, sea, and overland). It operates about 350 aircraft and more than 95,000 ground carriers. UPS should also benefit from the growth in the e-commerce sector. | ||||
| Company | Ticker | Sector | Upside Potential | Sharpe (FY01) |
| FedEx | FDX | Delivery Services | 6 % | 5.27 |
| Investment case: FedEx is a global provider of delivery services (air, sea, and overland). It operates more than 650 aircraft and more than 70,000 ground carriers. Increased B2C activity should back transport volumes and hence sales should follow suit. | ||||
| Company | Ticker | Sector | Upside Potential | Sharpe (FY01) |
| Panalpina | PWTN | Delivery Services | -4 % | 4.03 |
| Investment case: Panalpina is one of the world’s largest providers of forwarding and logistics services. The group operates (either directly or through partners) in more than 150 countries. An increase in the world’s trading and e-commerce activities bodes well for the company given its extensive network and knowledge as an asset-light provider. | ||||
| Company | Ticker | Sector | Upside Potential | Sharpe (FY01) |
| Kühne & Nagel | KNIN | Marine Transporter | 1 % | 5.65 |
| Investment case: Kühne & Nagel is one of the leading logistics companies worldwide operating in more than 100 countries with more than 60,000 employees. Given its worldwide presence, it should be able to benefit from increased B2B and B2C e-commerce activities. The company has strong exposure in Asia, where it could become the major service provider. | ||||