Ian FungFedExFDXCOMMENTFeb 21, 2020

From last-mid-October to mid-February, transports rallied 25% on hopes of better interest rates and better volumes. Then, the Iran war and oil spike came out of nowhere and this sector has fallen 12%. FedEx is more than doubled since last April. It just reported a strong beat and forecast through 2029. It will spin off its freight business which could unlock value. Revenues and EPS beat. Operating margin also surprised well. Still has room to run as it trades at only 16x PE for 2027.

Many commercial planes ship a lot of goods around the world and they won't fly over the Middle East now. So this means FedEx will pick up the slack. Their volumes will jump during this war.

 It reports on Thursday. The CEO has done a great job cutting costs.

It reports Thursday. He sees strong growth due to e-commerce. They just delivered strong numbers.

Helped by falling interest rates, the Christmas season and a fine CEO.

One of his favourite stocks. Trades at 14x PE. Excepts it to top $300.

Last night, they reported a surprisingly good quarter, so shares jumped 2.3%. It has struggled since summer 2024 and especially during the tariff spring of 2025. Is still -17.6% this year and has been downgraded recently. Total revenue is +3% YOY, driven by core FedEx express business. Adjusted EPS easily beat and issued a positive full-year forecast. They raised revenue growth outlook. Cutbacks, like removing stations and pick-up times, (Network 2.0) is cutting costs without angering customers. Also, are making their European business more efficiency with more productivity. He sees more upside, though is a little cautious due to tariffs. FedEx has done very well navigating this tricky economy. Trades at under 13x PE, cheap. Pays a safe 2.5% dividend.

It reports Thursday. Is being downgraded now that Chinese packages no longer have that exemption.

It reported last night. Their B2B has been stuck in neutral, though B2C is okay. FedEx missed numbers, but they have cut costs. The price now is an opportunity, but won't rally until we see how the tariffs shake-out. FDX depends alot on cross-border shipping.

He sold in November but still likes it a lot and has put it on their potential buy list if it gets to their price. There is concern over a drop-off in demand.

The CEO is doing a fine job in a very difficult time with all these tariffs. A very good company though can't advise buying a stock that went up 10% today [note: the wider market was up 10% too].

It doesn't do anything with Amazon, contrary to rumours. Shares are down 5% in the past week, but the CEO is doing a fine job. 

Dominated by international and air freight. Today, he'd lean toward a domestic provider like UPS.

He sold it at $295 recently. Loves the company, but earnings revisions came down. He bought at $262. He may re-buy it if the price and valuation are right. FedEx is a dominant player and the management team proves they can execute. The founder family still owns a lot of shares, and such families don't make crazy decision to preserve their stake. Also, cost savings and a huge share buyback are plusses. Also, they have fewer unionized employees than UPS.

It reports Thursday. They're working hard to reduce costs and improve gross margins. This is a nervous period for them because of the coming holiday season.