FDX - FedEx: DRIVE Initiative Has Exceeded My Expectations For Now

2024-07-01 05:19:15 ET

Summary

• FDX stock has gained 21.3% since July 2023, slightly underperforming the S&P 500.
• Q4 report shows FDX beat on top and bottom lines, with cost-cutting initiative DRIVE progressing well.
• Strategic evaluation of Freight business suggests a spinoff could bring significant benefits to shareholders.

Investment Thesis

The last time I wrote about FedEx Corp ( FDX ), I argued how the company’s initiatives such as One FedEx and the presence of an activist hedge fund may not be enough to offset the pressure on the company’s volumes caused by a challenging macro environment. I had a SELL rating on the stock. ...

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