United Parcel Service, Inc. (UPS) Is Cramer’s Coiled Spring Ready To Pop

United Parcel Service, Inc. (NYSE:UPS) is all set to show big numbers on its earnings report and this is hinted by the 90,000-95,000 people that the company is expected to hire during the holiday season.  Jim Cramer, chairman of TheStreet.com and host of CNBC’s Mad money, revealed on TheStreet  that United Parcel Service, Inc. (NYSE:UPS) is like a coiled spring, all set to pop.

United Parcel Service, Inc. (NYSE:UPS)

Cramer also commented on the boldness of United Parcel Service, Inc. (NYSE:UPS)’s move to go ahead and announce the hiring that it will be conducting, ahead of FedEx Corporation (NYSE:FDX), which is much bigger in size.

“[…] It’s so far behind FedEx Corporation (NYSE:FDX), yet it spent all that money to have a better holiday season. It just seems to me a ‘coiled spring’. I know people don’t like it, they all love fedex , but sometimes you got to buy something that is not loved in order to make money […],” said Cramer.

There were also two other factors which according to Cramer would translate into increased revenue volumes for United Parcel Service, Inc. (NYSE:UPS). Firstly, the addition of operating days and secondly, the improved shipping tracking timing, both seem to be geared to meet the influx in demand for packaging delivery during the holiday season.

Big business during the holiday season for the hot package deliver company, namely United Parcel Service, Inc. (NYSE:UPS) doesn’t necessarily mean that its competitors are also going to thrive during the same period especially in terms of stock valuations. One of United Parcel Service, Inc. (NYSE:UPS)’s competitor, Amazon.com, Inc. (NASDAQ:AMZN) was the case in point during Cramer’s ‘ buy outlook’ signal for United Parcel Service, Inc. (NYSE:UPS). He expected the Amazon stock to trade on lower levels even after  Alibaba Group Holding Ltd (NYSE:BABA)’s IPO. Amazon seems to be feeling the effects of a drop as fund managers make way for Alibaba Group Holding Ltd (NYSE:BABA)’s IPO in their portfolios. It is after all the world’s biggest IPO and the company has a fantastic future outlook.

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