FDX
Unfettered FedEx Freight Debuts as Stand-Alone Business
Article Summary
BUY- FedEx Freight Corporation (NYSE: FDXF) launched as a stand-alone business June 1 after being spun off from FedEx Corp., with CEO John Smith telling Transport Topics that the company's network is differentiated, with FedEx Freight ranked No. 1 among LTL carriers and operating 365 locations, 26,000 service center doors, 30,000 vehicles, and 17,000 trailers.
- The carrier aims to target small-to-medium-size business, grocery, healthcare, data center, and energy markets, with minimal penetration in the $9 billion small- to medium-size LTL market.
- Fedex plans to focus on dry goods in the food and beverage market, which requires no short-term investment in real estate or rolling stock on top of what the fleet owner already has, with significant revenue coming from large corporate customers.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 4.7% | 25% | 20.0 ptsMinimal (4.7%) - Very weak |
| EPS Growth Next 5Y ? | 13.6% | 25% | 35.0 ptsBelow Screener (13.6%) - Modest outlook |
| Target Price Upside ? | 21.2% | 20% | 70.0 ptsGood Upside (21.2%) - Target: $405.94 vs Current: $334.80 |
| Gross Margin % ? | 22.0% | 15% | 40.0 ptsModerate (22.0%) - Adequate margins |
| Drawdown from 52-Wk High ? | -19.1% | 15% | 40.0 ptsMild Pullback (-19.1%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About FDX
- FedEx Corporation, together with its subsidiaries, provides transportation, e-commerce, and business services in the United States and internationally.
- It operates through Federal Express and FedEx Freight segments.
- The company offers transportation services, including express, freight, less-than-truckload freight, and time-specific freight-shipping; and small-package ground delivery services.
- It also provides e-commerce and digital solutions; dataworks; printing and shipping management, including digital printing, professional finishing, document creation, design solutions, direct mail, signs and graphics, custom-branded boxes, copying, computer rental, free Wi-Fi, corporate print solutions, shredding, expedited U.S. passport processing and renewal, and digital notarization; packing services, as well as packing supplies and boxes; document and business services; and retail access for package transportation.
- In addition, the company offers logistics services, air and ocean freight-forwarding and cargo transportation, specialty transportation, customs brokerage and clearance, trade management tools and data, and door-to-door solutions; and third party logistics and supply chain management solutions, such as inbound logistics, warehousing and distribution, fulfillment, contract packaging and product configuration, systems integration, returns process and disposition, test, repair, refurbishment, and product liquidation.
- Further, it provides sales, marketing, administrative, information technology, and back-office support services.
- FedEx Corporation was founded in 1971 and is headquartered in Memphis, Tennessee.