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Investor Insights

This summary was created by AI, based on 11 opinions in the last 12 months.

FedEx is undergoing a significant transformation under its current management, focusing on cost-cutting measures and operational efficiencies. Despite recent share price volatility, the company has demonstrated resilience with a notable 15% rise following a strong quarterly report and an emphasized share buyback program. Analysts have varied perspectives, with some pointing out that FedEx remains a dominant player in the logistics space, but cautioning about the reliance on international revenues and potential cyclical challenges. There is a sentiment of cautious optimism; while some see the value in management's strategic moves, others remain skeptical about the stock's ability to achieve organic growth beyond cost reductions. Overall, FedEx's recent efforts are being watched closely by analysts, especially as they approach the critical holiday season.

Consensus
Cautious
Valuation
Fair Value
BUY ON WEAKNESS

It doesn't do anything with Amazon, contrary to rumours. Shares are down 5% in the past week, but the CEO is doing a fine job. 

DON'T BUY

Dominated by international and air freight. Today, he'd lean toward a domestic provider like UPS.

PAST TOP PICK
(A Top Pick May 09/24, Up 7%)

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.

COMMENT

It reports Thursday. They're working hard to reduce costs and improve gross margins. This is a nervous period for them because of the coming holiday season.

DON'T BUY

It's underperformed UPS, but shares have recovered a lot this year due to new management. Merging fleet and air operations helped by lowering costs. They have problems with overseas margins. Prefers Cargojet.

BUY

They report Thursday. Is in a big turnaround, cutting costs and growing revenues. The CEO is pulling it off.

BUY

They reported a strong quarter last night and shares jumped 15% today, but what really caught the street's eye was the large share buyback they announced. It shows confidence.

SELL

He sold FedEx to buy more Apollo. FedEx talked about longer-term costs cuts last quarter, which lifted shares, but cost-cutting is now in the stock. Topline revenue declines are expected next week when they report. The stock hasn't done anything this year.

TOP PICK

Typically cyclical, but two trucking companies have recently gone bankrupt. Reshoring will increase trucking, whether less-than-load or full load. Maryland bridge accident stopped a lot of ship traffic, so that should increase demand for rail and trucking at least temporarily. 

International business, which is growing faster than domestic. Likes management. Huge share buybacks. Guided to $17 EPS this year, he thinks can jump easily into $20s by next year. Best operator in the space worldwide. Not a huge valuation. Decent yield of 1.9%.

(Analysts’ price target is $309.61)
WATCH

They're cutting costs, not growing the business organically. Last quarter was really bad, so all they've done today is recover that loss. Give the new CEO some time to straighten out the cost base and then we'll see if things pick up. The stock isn't cheap; shorts are discounting the market but that's where it should be for this cyclical stock.

DON'T BUY
Shares rallying after report

Cost efficiency can only go so far. They aren't Meta which has Instagram and other levers of growth to pull. Yes, they've cut costs and introduced share buybacks, but after this you need to see organic growth.

WEAK BUY

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. 

BUY

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.

BUY

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.

BUY ON WEAKNESS

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.

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FedEx(FDX-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 5

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 4

Total Signals / Votes : 9

Stockchase rating for FedEx is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

FedEx(FDX-N) Frequently Asked Questions

What is FedEx stock symbol?

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

Is FedEx a buy or a sell?

In the last year, 9 stock analysts published opinions about FDX-N. 5 analysts recommended to BUY the stock. 4 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for FedEx.

Is FedEx a good investment or a top pick?

FedEx was recommended as a Top Pick by on . Read the latest stock experts ratings for FedEx.

Why is FedEx stock dropping?

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.

Is FedEx worth watching?

9 stock analysts on Stockchase covered FedEx In the last year. It is a trending stock that is worth watching.

What is FedEx stock price?

On 2025-03-13, FedEx (FDX-N) stock closed at a price of $240.98.