FedEx (FDX) Upgraded to “Strong-Buy” by Zacks Investment Research
FedEx (NYSE:FDX) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued on Thursday. The firm presently has a $310.00 price objective on the shipping service provider’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 13.01% from the company’s previous close.
According to Zacks, “Shares of FedEx have outperformed its industry as well as rival United Parcel Service over the past year. While FedEx has gained 45.9%, the industry it belongs to and UPS have rallied 27.1% and 17.3%, respectively, in the same time period. Ushering in further good news, FedEx experienced a highly successful holiday season driven by increased package volumes. In fact, the strong growth of e-commerce is a huge positive for the company. The new tax law is also expected to aid the company significantly. The company's efforts to reward its shareholders through dividend payments and share buybacks are also encouraging. The positive sentiment surrounding the stock may be gauged from the fact that the Zacks Consensus Estimate for fiscal 2018 earnings has increased 5.3% over the last 60 days. However, high costs are hurting the bottom line. Significant investments at the company's Ground unit are pushing up costs.”
A number of other brokerages also recently weighed in on FDX. Bank of America reaffirmed a “buy” rating and set a $315.00 target price on shares of FedEx in a research note on Friday, January 12th. BMO Capital Markets reaffirmed a “buy” rating and set a $300.00 target price on shares of FedEx in a research note on Monday, January 8th. Robert W. Baird reaffirmed a “buy” rating and set a $280.00 target price on shares of FedEx in a research note on Tuesday, January 9th. UBS Group raised shares of FedEx from a “neutral” rating to a “buy” rating and raised their target price for the company from $264.00 to $302.00 in a research note on Friday, January 5th. Finally, Loop Capital raised their target price on shares of FedEx to $318.00 in a research note on Thursday, January 4th. One investment analyst has rated the stock with a sell rating, three have given a hold rating, twenty-three have given a buy rating and one has given a strong buy rating to the company’s stock. FedEx has a consensus rating of “Buy” and a consensus price target of $270.49.
FedEx (NYSE FDX) opened at $274.32 on Thursday. FedEx has a one year low of $182.89 and a one year high of $274.66. The firm has a market cap of $72,914.19, a P/E ratio of 25.28, a price-to-earnings-growth ratio of 1.62 and a beta of 1.36. The company has a current ratio of 1.57, a quick ratio of 1.50 and a debt-to-equity ratio of 0.89.
FedEx (NYSE:FDX) last announced its earnings results on Tuesday, December 19th. The shipping service provider reported $3.18 earnings per share for the quarter, beating the Zacks’ consensus estimate of $2.89 by $0.29. FedEx had a net margin of 4.74% and a return on equity of 20.56%. The business had revenue of $16.30 billion during the quarter, compared to the consensus estimate of $15.67 billion. During the same quarter last year, the firm earned $2.80 earnings per share. The business’s revenue for the quarter was up 9.4% on a year-over-year basis. equities research analysts expect that FedEx will post 13.17 EPS for the current fiscal year.
In related news, COO David J. Bronczek sold 46,555 shares of the firm’s stock in a transaction that occurred on Tuesday, January 2nd. The shares were sold at an average price of $255.49, for a total value of $11,894,336.95. Following the sale, the chief operating officer now owns 48,562 shares in the company, valued at $12,407,105.38. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director David P. Steiner sold 3,016 shares of the firm’s stock in a transaction that occurred on Friday, January 5th. The stock was sold at an average price of $266.05, for a total transaction of $802,406.80. Following the completion of the sale, the director now owns 16,040 shares in the company, valued at approximately $4,267,442. The disclosure for this sale can be found here. Insiders have sold 68,671 shares of company stock valued at $17,137,160 in the last three months. 8.45% of the stock is owned by insiders.
A number of hedge funds have recently modified their holdings of FDX. Salem Investment Counselors Inc. boosted its holdings in FedEx by 2.8% in the second quarter. Salem Investment Counselors Inc. now owns 479 shares of the shipping service provider’s stock worth $104,000 after purchasing an additional 13 shares during the last quarter. Krilogy Financial LLC boosted its holdings in FedEx by 0.4% in the second quarter. Krilogy Financial LLC now owns 511 shares of the shipping service provider’s stock worth $111,000 after purchasing an additional 2 shares during the last quarter. Financial Engines Advisors L.L.C. purchased a new stake in FedEx in the third quarter worth approximately $132,000. Massey Quick Simon & CO. LLC purchased a new stake in FedEx in the third quarter worth approximately $136,000. Finally, Carroll Financial Associates Inc. boosted its holdings in FedEx by 61.1% in the third quarter. Carroll Financial Associates Inc. now owns 633 shares of the shipping service provider’s stock worth $140,000 after purchasing an additional 240 shares during the last quarter. Institutional investors own 75.69% of the company’s stock.
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FedEx Corporation (FedEx) provides a portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand. The Company’s segments include FedEx Express, TNT Express, FedEx Ground, FedEx Freight and FedEx Services.
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