Opinions The Weekly Buzzing Stocks by Billy Kawasaki
FedExFDXTOP PICKJun 22, 2023
Stock price when the opinion was issued
As of Jun 05, 2026. Market Open.
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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.
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.
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.
Fedex connects people and possibilities through our worldwide portfolio of shipping, transportation, e-commerce and business services. we offer integrated business applications through our collaboratively managed operating companies — collectively delivering extraordinary service to our customers — using the expertise and reliability represented by the fedex brand. our people are the foundation of our success, and fedex has consistently ranked among the world’s most admired and trusted employers. we inspire our global workforce of more than 400,000 employees to remain absolutely, positively focused on safety, the highest ethical and professional standards, and the needs of their customers and communities. we owe our success as an industry leader to the more than 400,000 global team members who deliver exceptional customer service experiences day-in and day-out. want to be part of this dynamic team? check out our open positions located on the careers site on fedex.com: http://careers.va