#2 - FedEx Corporation (NYSE:FDX)
FedEx Corporation, like its closest competitor United Parcel Service (UPS), is uniquely positioned within the shipping and freight industry. The company serves all manner of business with particularly heavy exposure to the consumer, eCommerce, and businesses like Amazon, Chewy.com, and Wayfair.com.
The added bonus for FedEx, the tailwind if you will, is the pandemic. The pandemic has caused a massive shift to eCommerce that has this company and UPS working round the clock to keep up. If Amazon can be used as a leading indicator for FedEx consider it has hired hundreds of thousands of new employees to help with the rise in demand.
FedEx sparked a parabolic move in its stock earlier this year when it announced aggressive price increases due to the spike in demand. Aggressive price increases, a high double-digit surge in YOY eCommerce sales, and an extended holiday shopping season add up to one thing for this company. Profits. Over the next two years, earnings growth is expected not once but twice from 2020's pandemic low to +10% in fiscal 2021 and +25% in fiscal 2022.
About FedEx
FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. The FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; and time-critical transportation services.
Read More - Current Price
- $257.20
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 17 Buy Ratings, 7 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $301.33 (17.2% Upside)
