FedEx Corporation Stock Forecast:
According to 33 analysts, the average target price for FedEx Corporation’s stock over the next 12 months is USD 203.63, and the average rating is Buy. Stock Target Advisor’s analysis is Slightly Bearish, based on 4 positive and 9 negative signals. The stock price for FedEx Corporation at the last closing was USD 229.93, which has increased by +2.81% over the past week, +9.97% over the past month, and +8.96% over the last year.
Analysts Coverage Change:
- Raymond James upgrades FedEx stock to an Outperform rating with a target price of $285.
- Stifel Nicolaus maintains a Buy rating and raises the target price to $264 from $242.
- Citigroup maintains a Buy rating and increases the target price to $285 from $275.
- Goldman Sachs & Co. maintains a Buy rating and raises the target price to $258 from $250.
- Robert W. Baird & Co. raises the target price to $275 from $250.
- Stephens reiterates an Overweight rating with a target price of $290.
- Morgan Stanley & Co. has increased its target price to $180 from $145.
FedEx News:
On April 5, 2023, FedEx (FDX:NYE) announced its plan to restructure its Express, Ground, and other units as part of its cost-cutting plan. The company aims to consolidate its units by June 2024, which is expected to save them $4 billion. This move comes after FedEx reported a decline in its quarterly earnings due to rising fuel costs and increased competition in the logistics industry. The restructuring plan is seen as a way for the company to streamline operations and improve profitability.
Positive Fundamentals:
- High market capitalization, indicating stability and being among the top quartile of its sector.
- Underpriced compared to book value, trading low compared to peers on a price to book value basis and in the top quartile, which may suggest undervaluation but requires verifying financial performance.
- Positive cash flow in the most recent four quarters.
- Positive free cash flow in the most recent four quarters.
Negative Fundamentals:
- FedEx stock has high volatility, and its total returns have been volatile and above median for its sector over the past 5 years.
- The company has underperformed its peers on annual average total returns and dividend returns in the past 5 years.
- The stock is overpriced compared to its earnings and free cash flow basis, and its return on equity and assets has been below median compared to its peers in the most recent 4 quarters.
- The company is highly leveraged, but this could be due to its growth strategy.
- The stock has shown below median dividend growth in the previous 5 years compared to its sector.
FA Score (Fundamental Analysis):
The fundamental analysis of FedEx stock is “Slightly Bearish” with a FA score of 3.1 out of 10, where 0 is very bearish and 10 is very bullish.
