#1 - Federal Express (NYSE:FDX)
Federal Express (NYSE: FDX) - The major reason that Fed Ex’s stock has tanked in 2018 is the existential threat that investors feel that Amazon represents. The stock is down 22.4% for the year which is in sharp contrast to the S&P 500 ETF which is up 4.65% year to date. As Amazon is making noise about expanding their Amazon Air service, investors are nervous that they will pull market share from Federal Express. That threat, however, appears to be overstated. Amazon accounts for less than 3% of FDX's revenue. In fact, it would seem that the United States Postal Service (USPS) would be hurt more if Amazon were to start its own delivery service. More importantly, Fed Ex is continuing to adapt to the changing retail landscape so that it can compete, and in some cases provided a competitive advantage to Amazon. A good example of this is their latest initiative – a partnership with Walgreen’s Boots Alliance to provide next-day prescription service. Analysts like what they see because 90% are rating them as a buy with forecasted sales to rise by 7% in 2019 and 5% in 2020 and forecasted earnings per share (EPS) to increase 15% in 2019 and 14% in 2020.
About FedEx
FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. The FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; and time-critical transportation services.
Read More - Current Price
- $275.73
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 18 Buy Ratings, 8 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $324.88 (17.8% Upside)
