FedEx Corporation (FDX) operates a global network for express shipping, ground transportation, freight forwarding, and logistics support. Headquartered in Memphis, Tennessee, it coordinates global delivery and e-commerce activities. The company has a market capitalization of $88.24 billion.
Based on strong analyst sentiment regarding FedEx’s strategic success, the company has the potential to capitalize on growing demand for logistics and delivery services. Over the past 52 weeks, the stock has gained 43.2%, and it is up 32.6% year-to-date (YTD). FedEx’s shares reached a high of $383.59 on Feb. 18, and are only down marginally from that level.
The S&P 500 index ($SPX) is up 12.3% over the past 52 weeks and is up marginally YTD. Therefore, the stock has outperformed the broader market over these periods. Compared with FedEx’s own sector, we also observe outperformance. The State Street Industrial Select Sector SPDR ETF (XLI) has increased 26.3% over the past 52 weeks, while it has rallied 12.8% YTD.
For the second quarter of fiscal 2026 (quarter ended Nov. 30), FedEx’s revenue increased 7% year-over-year (YOY) to $23.47 billion, which is higher than the $22.86 billion that Wall Street analysts had expected.
The topline growth is based on Federal Express segment revenue increasing 8% to $20.43 billion in the prior-year period, driven by higher U.S. domestic and International Priority package yields, ongoing cost reductions from transformation efforts, lower business optimization expenses, and rising U.S. domestic package volumes. FedEx’s adjusted EPS for the quarter was $4.82, up 19% YOY and higher than the expected $4.07 figure.
For the current quarter, Street analysts expect FedEx’s profit to decrease 8.7% YOY to $4.12 per diluted share, while for the current fiscal year, it is expected to increase 1.6% to $18.48 per diluted share, followed by a 16.5% growth to $21.52 per diluted share in the following fiscal year. The company also has a solid history of surpassing consensus estimates, topping them in three of the four trailing quarters.
Among the 27 Wall Street analysts covering FedEx’s stock, the consensus is a “Moderate Buy.” That’s based on 17 “Strong Buy” ratings, two “Moderate Buys,” seven “Holds,” and one “Moderate Sell.” The ratings configuration has become more bullish than a month ago, with the number of “Strong Buy” ratings increasing from 15 to 17.
This month, TD Cowen analyst Jason H. Seidl reaffirmed a “Buy” rating for FedEx while raising the price target from $313 to $383, while Wells Fargo analyst Christian Wetherbee maintained an “Overweight” rating while raising the price target from $380 to $430.
FedEx’s mean price target of $365.85 indicates a 4.5% downside over current market prices. However, the Street-high price target of $479 implies a potential upside of 25%.
On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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