FedEx (FDX)

They published results today that surprised negatively on earnings but their growth is very strong and the company is well managed. E-commerce will continue to grow. He thinks FedEx and UPS will continue to benefit from that and their future is fine. The lower earnings come from paying their employees more, which is probably a good investment in the future of the company. He sees today’s drop as a buying opportunity.

One of the stronger industrial names out there. Does move around quite a bit, but no one can create the same infrastructure and fleet that Fedex has. Price is above the 200-day moving average. When the economy turns or slows down, he’ll probably exit the name.

This has had a great run, driven by electronic commerce. It is the best in the business but is not a cheap stock and he would look elsewhere. The e-commerce trend won’t go away, but companies like Amazon and WalMart are talking about other forms of delivery to the door, which could take business away from FedEx. Even if these don’t become significant right away, the company is subject to competition. There is too much disruption in the established industries and this doesn’t offer a margin of safety.

Seasonality is mid-October through Christmas, not the summer which has no catalyst to move the stock. It's been rising since start-2016 to start-2018, but since then has broken that uptrend and fallen off highs. Don't look at it now.

This stock has been coloured by the pullback in the transports sector. However, the group is still making higher lows. I would prefer XPO-N that sells its technology to all sorts of transport companies. He would like to see more upside on price before jumping back in.

A good play on e-commerce, and FedEx is in a great position. They have a huge fleet of trucks and airplanes, and recently bought a Dutch company to move into European delivery. Well-managed. It trades at 15x, a reasonable multiple. An opportunity to participate in e-commerce as well as transportation.

It shouldn't fear Amazon and in fact work together. It's down 7% this year. Buy this current dip. Fedex will be a huge beneficiary on blockchain--they are investing in this.

(A Top Pick July 7/17 Up 7%). At this point, trade war uncertainty is a signal to exit this position now. Their capex spending for plane orders could cause some additional headwinds.

They dropped on fears of AMZN-Q getting into local delivery. There is a lot of internal momentum this stock can have. They acquired TNT. It is a cheap way to play logistics companies. (Analysts’ target: $284.92).

Great company. Well run. Biggest risk is Amazon.com, Inc (AMZN-O) coming to the business. Trading at a 15 multiple. He traded out of it.

He likes the company since the recent TNT acquisition, which made them a more global competitor. The challenge will be the concerns around capex spending into 2020. The stock has pulled back and the market is trying to price in the capex requirements. The stock is trading at 13 times earnings.

(A Top Pick July 7/17 Up 19%) This captures the themes of global economic growth and e-commerce. This continues to grow with these secular trends. He thinks it may be getting close to the business cycle peak as it is linked to consumer spending.

It is a great e-commerce play. They are one of the premier deliver options. They are not expensive at 15 times earnings. They just bought TNT last year, giving them international exposure.

(A Past Top Pick on May 2, 2017, Up 32%) Likes this space. Well-run company. E-commerce is a huge catalyst to FedEx's business as more and more people buy online, so FedEx delivers those packages. Also, they expanded their footprint last year by buying a European delivery company, though it suffered a costly cyberattack. FedEx will be a strong name going forward.

Boasts $65 billion in revenues and a massive fleet of 150,000 trucks. It's currently affordable at less than 15x earnings. Going forward, technology will impact FedEx positively with drone delivery and self-driving cars. (Analysts' price target $284.96)