Analysts rate FedEx Corporation (FDX:NYE) with a Strong Buy, $316 Target

STA Research
by: STA Research
FedEx Corporation stock

Analysts rate FedEx Corporation with a consensus Strong Buy rating and a 12-month average Target price of $316.28 per share.

Sanford Bernstein set it’s 12 month target forecast on FedEx Corporation at $333.

Based on the FedEx Corporation stock forecasts from 20 analysts, the average analyst target price for FedEx Corporation is USD 316.28 over the next 12 months. FedEx Corporation’s average analyst rating is Strong Buy. Stock Target Advisor’s stock analysis of FedEx Corporation is Slightly Bullish, which is based on 9 positive signals and 4 negative signals. At the last closing, FedEx Corporation’s stock price was USD 213.18. FedEx Corporation’s stock price has changed by -1.36% over the past week, -19.03% over the past month and -21.10% over the last year.

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. The company’s FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; time-critical transportation services; and cross-border e-commerce technology and e-commerce transportation solutions. The company was founded in 1971 and is based in Memphis, Tennessee.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value

The stock is trading low compared to its peers on a price-to-book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peers and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on a free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Earnings Growth

Compared to its sector, this stock has shown top quartile earnings growth in the previous 5 years.

What we don’t like:

Poor risk-adjusted returns

This company is delivering below median risk-adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has underperformed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

 

Disclaimer

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