FedEx

FDX-N

Buy during negative sentiment? Moodys just upgraded FedEx. Global trade is under pressure, so that's a headwind. Also, Amazon could very well build their own delivery network for certain parts of their operation. They manage to build AWS, in comparison. So, Amazon is a greater worry to FedEx. So, he's cautious about FedEx.

They missed their numbers but issued downbeat guidance. They also divorced from Amazon, who are now competing against them. Third, the trade war is impacting their earnings. FedEx is basically saying that the global economy is slowing. They need to make up for the Amazon loss, perhaps dealing with Shopify or something. The DHL acquisition didn't integrate well.

He owned it for a decade, but got stopped out last year. It's down 30% off its highs, but 70% of their business is NOT e-commerce. They have lots of room to grow into e-commerce. Some individual brands are bypassing Amazon and using FedEx directly to deliver. 50-60% of Walmart deliveries use FedEx who are putting 500 stores into Walmarts. Good brand and valuation. (Analysts’ price target is $188.42)

Would sell UPS and buy Fedex. Fedex is better managing headwinds from Amazon. They also have more areas that Amazon won' tackle. Wouldn't invest in either due to high cost in order to compete. Their current infrastructure is not ready to compete in the e-commerce world, and will eat up their free cashflow.

Almost a top pick today. FedEx suffers from investors worried over Amazon's plans to go into shipping and the troubled world trade picture, but Amazon accounted for only 1% of FedEx's profits. Also, FedEx trades at 10x next year's earnings, so why not buy some and hold it for several years?

He looked at it. They still have a few issues in integrating recent European acquisitions. There is lots of cost pressure. Autonomous driving could be a huge boon to them. They are getting out of the AMZN-Q game. There is a lot of disruption in the sector right now and not in FDX-N's future.