FedEx Stock Review (FDX): What You Need To Know

By Amit Chowdhry ● September 16, 2020
  • Looking for a FedEx stock review (NYSE: FDX)? Here is some information to help you decide whether to add FedEx to your portfolio.

Earlier this week, FedEx Corporation (NYSE: FDX) reported better-than-expected sales and earnings for Q1 2021. FedEx reported $4.87 in per-share earnings based on $19.3 billion in sales. Analysts were expecting between $2.60 and $2.70.

In terms of revenue, the company reported $19.30 billion. Analysts were expecting slightly under $17.6 billion.

“Our earnings growth underscores the importance of our business initiatives and investments over the last several years, and, in many ways, the world has accelerated to meet our strategies,” said FedEx chairman and CEO Frederick W. Smith. “I would like to thank our team members whose efforts during this time have helped keep the world’s health care, industrial and at-home supply chains moving despite the challenges of the global pandemic.”

FedEx is not going to provide an earnings forecast for fiscal 2021. And the capital spending forecast for the year is up $200 million to $5.1 billion, driven by additional capacity initiatives for supporting increased volume levels.

“While business demand improved in the first quarter, continued uncertainties cloud our ability to forecast full-year earnings,” added Alan B. Graf, Jr., FedEx executive vice president and chief financial officer. “However, we expect to continue to benefit from our strong position in the U.S. and international package and freight markets, yield improvement opportunities, and cost management initiatives.”

FedEx Stock (FDX) Review:

While reviewing FedEx’s stock, I checked out an analyst consensus report. In the consensus: 8 analysts are saying strong buy; 11 say buy; 9 say neutral; 0 say sell; and 1 says strong sell. I also checked out FedEx’s stock performance over certain periods of time:

1-Day: +5.76%

5-Day: +10.9%

1-Month: +20%

6-Month: +176.6%

YTD: +65.5%

1-Year: +44.2%

2-Year: -2.0%

5-Year: +67.3%

Since IPO in 1978: +20,480.12%

Based on all of the information above, I like what I am seeing when it comes to FedEx in the long-term, but not in the short-term. What I plan to do in my portfolio is to buy more FedEx stock and hold it for an extended period of time. Specifically, I plan to keep increasing my position at a wide variety of price points in order to keep improving on the dollar-cost averaging.

Disclosure: I own a few FDX shares. I wrote this article myself and I do not have any business relationship with any company whose stock I write about. I am not a financial advisor and all articles are my opinion. You should do your own due diligence and consider talking to a financial professional before investing.