FedEx (FDX) Raised to “Hold” at Zacks Investment Research
FedEx (NYSE:FDX) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Friday.
According to Zacks, “Shares of FedEx have outperformed its industry and rival United Parcel Service in a year's time. A buoyant U.S. economy and e-commerce growth has been aiding the company. Additionally, higher shipping rates and volume growth are huge positives for FedEx. Meanwhile, lower tax rates are boosting the company’s bottom-line performance. We are also impressed by FedEx’s decision to reward its shareholders through dividend payments and share buybacks. However, high costs are hurting the bottom line. Significant investments at the company's key divisions are pushing up costs as well. Capital expenses are estimated at $5.6 billion for fiscal 2019. Trade-war related fears are also weighing on FedEx.”
Other equities research analysts also recently issued research reports about the stock. Morgan Stanley cut their price objective on shares of FedEx from $248.00 to $245.00 and set an “equal weight” rating for the company in a research report on Wednesday, June 20th. Credit Suisse Group boosted their price objective on shares of FedEx from $306.00 to $315.00 and gave the company an “outperform” rating in a research report on Wednesday, June 20th. Oppenheimer boosted their price objective on shares of FedEx from $282.00 to $288.00 and gave the company an “outperform” rating in a research report on Thursday, June 14th. Citigroup boosted their price objective on shares of FedEx from $274.00 to $282.00 and gave the company an “outperform” rating in a research report on Wednesday, May 16th. Finally, UBS Group downgraded shares of FedEx from a “buy” rating to a “neutral” rating and set a $256.00 price objective for the company. in a research report on Monday, July 16th. Three research analysts have rated the stock with a hold rating and eighteen have given a buy rating to the company. The company presently has an average rating of “Buy” and a consensus target price of $287.70.
FedEx (NYSE:FDX) last issued its quarterly earnings data on Tuesday, June 19th. The shipping service provider reported $5.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.72 by $0.19. FedEx had a net margin of 6.99% and a return on equity of 23.17%. The firm had revenue of $17.31 billion during the quarter, compared to the consensus estimate of $17.24 billion. During the same quarter in the previous year, the firm posted $4.25 EPS. The company’s revenue for the quarter was up 10.1% compared to the same quarter last year. sell-side analysts forecast that FedEx will post 17.31 earnings per share for the current fiscal year.
A number of institutional investors have recently modified their holdings of FDX. HC Financial Advisors Inc. purchased a new stake in FedEx in the 4th quarter worth $2,103,000. Victory Capital Management Inc. lifted its stake in FedEx by 50.5% in the 1st quarter. Victory Capital Management Inc. now owns 97,709 shares of the shipping service provider’s stock worth $23,461,000 after purchasing an additional 32,777 shares in the last quarter. Motley Fool Asset Management LLC purchased a new stake in FedEx in the 1st quarter worth $570,000. Wade G W & Inc. purchased a new stake in FedEx in the 1st quarter worth $208,000. Finally, Shufro Rose & Co. LLC purchased a new stake in FedEx in the 1st quarter worth $680,000. 72.52% of the stock is owned by institutional investors.
FedEx Company Profile
FedEx Corporation provides transportation, e-commerce, and business services worldwide. The company's FedEx Express segment offers shipping services for delivery of packages and freight. Its FedEx Ground segment provides business and residential money-back guaranteed ground package delivery services; and consolidates and delivers low-weight and less time-sensitive business-to-consumer packages.
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