FedEx (NYSE:FDX) Downgraded to Hold Rating by Zacks Research

Key Points

• Zacks Research downgraded FedEx from a "strong‑buy" to a "hold"; analysts overall still rate the stock a "Moderate Buy" with an average price target of $371.19 (1 Strong Buy, 17 Buy, 9 Hold, 3 Sell).
• FedEx posted a Q3 double beat—EPS $5.25 vs. $4.12 estimate and revenue $24.0B vs. $23.44B—and raised full‑year profit guidance to roughly $19.30–$20.10, which has supported recent share strength.
• Key near‑term risks include an NTSB investigation into a close call with an Alaska Airlines jet and the potential for higher fuel costs or geopolitical escalation to pressure margins and volumes.

FedEx (NYSE:FDX - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Wednesday,Zacks.com reports.

Several other research firms have also recently weighed in on FDX. Oppenheimer reaffirmed a "market perform" rating on shares of FedEx in a research note on Friday, December 19th. Sanford C. Bernstein restated an "outperform" rating and set a $457.00 price target on shares of FedEx in a report on Friday, March 6th. UBS Group upped their price objective on shares of FedEx from $314.00 to $412.00 and gave the company a "buy" rating in a research note on Wednesday, February 4th. Barclays lifted their target price on shares of FedEx from $360.00 to $450.00 and gave the company an "overweight" rating in a research note on Tuesday, February 10th. Finally, Royal Bank Of Canada downgraded shares of FedEx to a "sector perform" rating in a research note on Wednesday, December 17th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $371.19.

FedEx Price Performance

FDX stock opened at $355.15 on Wednesday. FedEx has a one year low of $194.29 and a one year high of $392.86. The firm has a 50-day moving average of $350.29 and a two-hundred day moving average of $289.94. The firm has a market capitalization of $83.50 billion, a PE ratio of 19.58, a P/E/G ratio of 1.66 and a beta of 1.29. The company has a current ratio of 1.27, a quick ratio of 1.23 and a debt-to-equity ratio of 0.72.

FedEx (NYSE:FDX - Get Free Report) last released its earnings results on Thursday, March 19th. The shipping service provider reported $5.25 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.12 by $1.13. FedEx had a return on equity of 16.63% and a net margin of 4.81%.The company had revenue of $24 billion during the quarter, compared to analyst estimates of $23.44 billion. During the same quarter in the prior year, the company earned $4.51 earnings per share. The company's revenue for the quarter was up 8.3% on a year-over-year basis. On average, analysts forecast that FedEx will post 19.14 earnings per share for the current year.

Institutional Trading of FedEx

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Nalls Sherbakoff Group LLC acquired a new stake in FedEx in the 4th quarter worth approximately $43,000. Larry Mathis Financial Planning LLC acquired a new stake in shares of FedEx in the fourth quarter worth $359,000. Green Ridge Wealth Planning LLC bought a new stake in shares of FedEx during the 4th quarter worth $224,000. Corient Private Wealth LLC grew its stake in FedEx by 14.8% in the 4th quarter. Corient Private Wealth LLC now owns 109,246 shares of the shipping service provider's stock valued at $31,561,000 after buying an additional 14,086 shares during the last quarter. Finally, Union Savings Bank acquired a new position in FedEx in the 4th quarter valued at $122,000. Institutional investors and hedge funds own 84.47% of the company's stock.

Key Stories Impacting FedEx

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: Q3 beat and guidance lift — FedEx posted a double beat (revenue and EPS) and raised FY profit guidance to roughly $19.30–$20.10, a clear near‑term catalyst for the rally. FedEx shares surge as investors cheer resilient demand, higher profit forecast
• Positive Sentiment: Resilient demand and pricing — Management said global demand is holding and the company’s fuel surcharge is offsetting higher oil costs for now, supporting margin durability. FedEx sees global demand holding amid Iran war, raises profit outlook
• Positive Sentiment: Operational execution and strategic moves — Execs highlighted strong peak‑season profitability, cost discipline and that the planned freight spin‑off remains on track, which investors view as value‑enhancing. FedEx Tops Q3 Estimates, Freight Spin-Off Remains On Track
• Neutral Sentiment: Broader market context — Positive FedEx news is arriving amid mixed premarket futures and macro volatility (triple witching, Middle East developments), which can amplify intraday moves but isn’t FedEx‑specific. Stock Market Today: S&P 500, Dow Futures Down Ahead Of 'Triple Witching'
• Negative Sentiment: Safety probe — The NTSB is investigating a close call between a FedEx and an Alaska Airlines jet at Newark; any operational safety concerns could weigh on sentiment if they lead to regulatory scrutiny or costs. NTSB investigating close call between FedEx, Alaska Airlines jets
• Negative Sentiment: Geopolitical and fuel‑cost risk ahead — Management’s outlook assumes no further major disruptions; sustained oil >\$100 or escalation in the Middle East could push costs higher and dent volume if customers pull back. FedEx is getting more upbeat about the year — despite surging fuel costs

About FedEx

FedEx Corporation NYSE: FDX is a global logistics and courier company headquartered in Memphis, Tennessee. Founded by Frederick W. Smith in 1971 and beginning operations in the early 1970s, the company pioneered overnight express shipping and has since expanded into a diversified portfolio of transportation, e-commerce and supply-chain services. FedEx operates an integrated air-and-ground network that moves parcels, freight and documents for businesses and consumers worldwide.

FedEx's core operating segments include express parcel delivery via its FedEx Express division, domestic and residential parcel delivery through FedEx Ground, less-than-truckload (LTL) freight services, and logistics and supply-chain management solutions.

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