FedEx (FDX)

One of the world's largest air freight and logistics companies, FDX, is near 52 week highs, but would be a buy again if it shows a short term retracement. Q2 EPS of $2.53 crushed analyst estimates of $1.42. Capital invested into upgrading their infrastructure is starting to pay off. It has a nice dividend kicker to go with it and the payout ratio of under 55% of cashflow provides security to it being maintained. We would look for pullback towards $185 as a good entry point. Yield 1.3%

Last year, investors shied away from this delivery giant as Amazon crept into this business. Then, the virus hit. FedEx not only endured the lockdown, but capitalized on the surge in e-commerce orders as people stayed home and bought more stuff online. In fact, consumers will likely continue buying online even as they gradually return to shopping in brick-and-mortar stores. FedEx released its quarterly on March 17 soon after the start of the lockdown and reported a 2.8% YOY sales increase for Q1. The day before that, the stock plunged to a low of $90.49. It has since bounced back over to trade near $140, rising 5% last Tuesday alone. FedEx is hanging onto its 2% dividend. Analysts are starting to like FedEx again. Analyst Gordon Reid recently named it a top pick based on its solid $70 billion annual revenues. Also, its investments in e-cars, drones and other technology will ultimately save money and fatten the bottom line. John O'Connell agrees: FedEx troubles are behind them, and they are too big and dominant to go anywhere. The street warns of a upcoming shaky quarters, but many buyers are taking a long-term view.