Investopedia: UTi Worldwide Sees A Relief Rally

Investors in freight forwarder UTi Worldwide (Nasdaq:UTIW) certainly had little reason to be optimistic going into second quarter earnings. With ocean freight rates pressuring margins and air cargo demand falling, earnings expectations had been drifting lower for weeks. Then when FedEx (NYSE:FDX) warned of a disappointing quarter it was not hard to think that investors were bracing themselves for this report.

Consequently, when UTi Worldwide reported a quarter that wasn't all that terrible on Thursday, the stock enjoyed a good pop. Although the stock remains undervalued on a long-term basis, it's going to take real improvement in the underlying markets (and not just relief rallies) for this stock to work.

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