FedEx Corporation Stock Forecast:
According to 32 analysts, the average target price for FedEx Corporation stock over the next 12 months is USD 240.69. The average analyst rating for the stock is Strong Buy. However, Stock Target Advisor‘s analysis of FedEx Corporation suggests a slightly bearish outlook, with 5 positive signals and 9 negative signals. The stock closed at USD 236.44 in the last session, representing a change of +5.08% over the past week, +6.30% over the past month, and +1.57% over the last year.
Analysts Coverage Change:
- Raymond James maintains FedEx with an “Outperform” rating and lowered the target price to $280 from$285.
FedEx Corp News:
FedEx Corp is set to report its fourth-quarter earnings this Tuesday. As investors eagerly await the results, they will be particularly interested in understanding the impact of the cost-cutting measures undertaken by the company last year and whether these actions have allowed FedEx to narrow the margin gap with its rival, United Parcel Service (UPS).
The global shipping industry has been navigating a challenging period due to the downturn in shipping volumes as the boom experienced during the pandemic begins to wane. Concerns around high inflation and the potential for an impending recession have cast a shadow of uncertainty on consumer spending, further impacting margins for most operators in the sector.
Analysts expect FedEx’s operating expenses to decrease to $20.81 billion for the fourth quarter, down from $21.13 billion in the previous three-month period. These cost-cutting initiatives are anticipated to contribute to a potential profit boost for the company. Refinitiv data suggests that FedEx is expected to report a per-share profit of $4.89 on an adjusted basis for the fourth quarter, compared to $6.87 reported a year earlier.
It is estimated that FedEx will also experience a 6.9% decline in quarterly revenue, with expectations set at $22.72 billion. This decrease in revenue aligns with the overall industry trend and reflects the challenging market conditions faced by shipping companies.
