Higher prices will reduce demand for goods and cool the economy, which in turn impacts the transportation sector.
In the most recent trading session, FedEx (FDX) closed at $275.06, indicating a -1.29% shift from the previous trading day.
Amid FDX's cost-cut efforts in the face of demand weakness, we asses the investment worthiness of the stock.
The new year is just getting started, and that means investors need to get off on the right footing for the first quarter so that they can have the rest of the year as an open field to take on more positions and ideas, with not only the confidence but the financial room they would have made for themselves after rocking the start of the year. To get this done, investors should align themselves with what some Wall Street firms are doing right now.
FDX's Q2 report was unimpressive, with revenue down 0.9% y/y and EPS up 1.5% y/y, missing and beating analyst estimates respectively. The spinoff of the Freight business is a positive move, expected to unlock significant shareholder value and provide higher long-term returns. Post the spinoff, investors are better off investing fully in the Freight Entity and exiting the parent company.
The holiday season is here, and that means FedEx (FDX 1.05%) and United Parcel Service (UPS 0.41%) are hard at work fulfilling peak order volumes. FedEx has produced decent gains on the year, but UPS is down big and is hovering around a four-year low.
Don Broughton, Broughton Capital managing partner, joins 'The Exchange' to discuss his transports outlook in 2025.
Shares of FedEx Corporation FDX are trading lower Tuesday. The stock is continuing the downtrend that began on Dec. 19 when, after the close, the company announced earnings and said it plans to separate its Freight Unit.
FedEx NYSE: FDX shares surged following the fiscal Q2 2025 earnings report because of its daring plan to unlock value. After careful review, the board has decided to spin off the freight business, which is struggling and offsetting strength in the core FedEx Express operations.
With FDX looking to cut costs in the face of weak demand, we aim to assess the investment worthiness of the stock currently.
BofA Securities analyst Ken Hoexter reiterated a Buy rating on FedEx Corporation FDX, raising the price forecast to $348 from $325.