2024-01-31 14:00:00 ET
Summary
- FedEx investors have experienced a remarkable recovery, as FDX gained nearly 38% in total return over the past year, outperforming the S&P 500.
- FedEx's Ground segment showed solid results, as its adjusted operating margin has improved. However, cyclical weakness in its Express segment likely concerned investors.
- Management is confident that these challenges aren't structural. Furthermore, the company is optimistic that it could maintain the share gains from UPS.
- I explain why the recent battering has opened another fantastic buying opportunity for investors anticipating a steep pullback.
- FDX's valuation is also inexpensive, suggesting a further re-rating potential could be in store, as it executes its cost-reduction efforts amid the cyclical recovery moving ahead.
I last updated FedEx Corporation ( FDX ) investors in June 2022 that it was emerging from its bottom. However, that thesis proved premature as FDX fell further through its September 2022 lows before bottoming out. Since then, the recovery in FDX has been remarkable. It has also gained nearly 38% in total return basis over the past year, outperforming the S&P 500 ( SPX ) ( SPY )....
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FedEx: Another Steep Plunge Presents Another Gift For Dip-Buyers