2024-07-01 05:13:48 ET
Summary
- FedEx while long struggling with operational efficiency, shown in losing USPS contract to UPS, is leading to cost-cutting measures that helped revenue increase in Q4.
- Recent earnings report beats expectations, showing increased net income, revenue, and operating income, leading their stock to move higher this week.
- FedEx's valuation suggests undervaluation compared to sector, with potential for significant upside if turnaround continues successfully.
Investment Thesis
I believe the ongoing struggles FedEx ( FDX ) has faced are mainly centered around their competitive operating efficiency, as exemplified by the U.S. Postal Service's decision to expand United Parcel Service ( UPS ) as their primary air cargo provider in April 2024 ....
Read the full article on Seeking Alpha
For further details see:
FedEx Q4: Turnaround Taking Hold