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Rally pausesThe Ultimate Top Drone Stocks List for Sky-High Returns (25+ Stocks)The post-Fed slumpThis summary was created by AI, based on 15 opinions in the last 12 months.
Experts have mixed opinions on FedEx's performance, with some expressing concerns about earnings miss and business challenges, while others see potential for growth and resilience in the face of temporary setbacks. The company's cost-cutting efforts, strong cash flow, and positive developments such as dividend increases and operational consolidations are highlighted as positive factors. Overall, there is optimism about the company's long-term prospects and its position in the e-commerce market.
Was down an ugly 12% today after an earnings miss. Over-reaction? Earnings slightly missed. Adjusted operating income grew, though still came in a tad light. Saw 25.5% earnings growth YOY, but EPS still missed the street's estimate. The company cut their full-year forecast. The problems are rooted into their Express business, their largest, which saw revenues -6% YOY and operating income -49% YOY. FedEx ground is solid, and Freight continues to recover. In the US, some businesses moved from Express to the cheaper Ground service. Make sense. Also, there's less international air freight as competing rates have flatlined. Because oil prices are down this year, their fuel surcharges (and revenues) are lower. Also, they saw less business from the US Post Office than expected. Also, Wall St. priced in savings of the long-term Drive transformation plan too early. Yes, these problems are real, but are not enough to give up on FedEx. He believes the CEO who says that many of its problems are transitory (i.e. the post office deal ends next year and the shift to Ground sounds like a holiday season thing). Earnings took a hit, yes, but didn't evaporate as they would have a year ago. In fact, numbers are resilient and show how successful they've been in cutting costs. Costs are much better than in ages. Amazon: their parcel volume now surpasses FedEx and UPS, something that neither the CEO nor analysts mentioned. If Amazon keeps taking market share, then this will be a major problem for FedEx. Again, he feels FedEx's problems are temporary, and it trades under 14x PE. It could be in the penalty box for a quarter, but FedEx will get cheaper and shares fall lower.
Shares are up 10% in the past month. They report today. See what they say about their business in China, which accounts for a serious part of their business. He likes FedEx ahead of its quarter.
It reports Tuesday. The new CEO has re-energized the company by cutting costs dramatically while revenues rise. He expects them to release a terrific quarter, but if there's any pullback, then buy. They're in a long-term refresh after showing choppy returns for a while. He likes this long-term and the e-commerce tailwind.
FDX is expected to grow the top-line in the mid-single digit range but EPS is expected to grow closer to the range of 20% over the next two years. The company would be sensitive to any economic slowdown that occurs but so far the US economy has remained resilient. At 12X forward earnings we think FDX looks fine. The last quarter was a solid beat on earnings (beating estimates by 22%) and the stock has done well this year. It produces strong cash flow ($9.6B annually) with decent conversion to free cash flow ($3.5B).
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They report Wednesday. He worries that even the best quarter won't send shares higher, and even decline, given high expectations. He expects a great quarter with beats. They took market share from UPS after fears of a UPS strike, but this seems like a one-time occurrence.
Are enjoying a good 2023 as they cut costs, but they are recapturing the losses of 2022. UPS is better for managing their balance sheet.
Exited, as he wasn't completely comfortable with management. Curveball from management last September made him lose confidence.
Revenues missed, but EPS beat. Mixed. Shares are up 31% YTD and trades at 31x PE. Guidance wasn't great. An activist is focusing on continuing cost cuts and increasing productivity. He's still in this and evaluating this into the next quarter. It's been a winner for him but is considering taking some shares off the table.
They report Tuesday. He expects a solid report. Shares are up 36% YTD. The activist investor there is really focusing on efficiency and shareholder value. They raised the dividend 53% in the last quarter and had a strong investor day. He likes management and is confident they will successfully integrate their various businesses.
Cheap now. It's need another great quarter. Buy!
Market likes its new focus on cost cuts. Closed valuation gap with UPS pretty dramatically. At risk in a slowing economy, which they have bridged with a low valuation and a lot of cost-cutting.
A bellwether for the wider economy and what a comeback story. Shares are up 62% from last September's lows. Today, they announced it will consolidate its three major operations (Ground, Express and Services) into one which will save $4 billion. Also, FedEx raised its dividend by 10%. Huge news.
FedEx is a American stock, trading under the symbol FDX-N on the New York Stock Exchange (FDX). It is usually referred to as NYSE:FDX or FDX-N
In the last year, 11 stock analysts published opinions about FDX-N. 11 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for FedEx.
FedEx was recommended as a Top Pick by on . Read the latest stock experts ratings for FedEx.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
11 stock analysts on Stockchase covered FedEx In the last year. It is a trending stock that is worth watching.
On 2024-03-18, FedEx (FDX-N) stock closed at a price of $253.18.
Good company. Down from peak, bit of a bounce. Probably will keep pace with market, don't expect outperformance. Going to be part of the e-commerce economy.