Company Overview - FedEx Corporation (FDX) is scheduled to report its Q3 results on March 20 after market close [1] Analyst Insights - The previous analysis of FDX stock was conducted on September 20, following the Q1 results [1] - The analyst emphasizes the importance of quantitative methods for identifying undervalued stocks across various industries [1] - The belief is that numerical data often provides a more realistic view of a company's prospects compared to narrative [1] Investment Philosophy - The analyst has been investing since 2013 and has gained knowledge from extensive reading on stock market strategies [1] - Notable books referenced include "100 Baggers," "Financial Shenanigans," and "The Quants" [1]

CNBC's Jim Cramer walked investors through next week on Wall Street, telling them to take note of the Federal Reserve's next meeting and earnings reports from companies including FedEx, Micron and General Mills. He also warned that regardless of earnings, market action will likely be shaped by President Donald Trump and the Fed."No matter what we hear from these companies, next week this market's hostage to the White House and the Federal Reserve," he saidMonday brings data about the consumer landscape with ...

Core Viewpoint - Goldman Sachs analyst Jordan Alliger has lowered earnings estimates for FedEx Corporation ahead of its third-quarter FY25 earnings release, reflecting ongoing transportation challenges and volume declines in B2B parcel services [1][2][3]. Group 1: Earnings Estimates - Third-quarter EPS estimates have been reduced from $4.65 to $4.40 due to transportation challenges, particularly in industrial-exposed LTL [1]. - FY25 EPS estimates have been lowered from $18.85 to $18.65, with FY26 estimates reduced from $23.30 to $22.20, and FY27 estimates cut from $26.30 to $25.50 [2]. - The adjustments reflect uncertainty surrounding tariffs and the recovery timeline for the manufacturing and B2B sectors, aligning with broader reductions across the transportation sector [3]. Group 2: Company Initiatives and Outlook - The analyst remains optimistic about FedEx's ongoing cost-cutting efforts and investments in its LTL business, which are expected to enhance operational leverage when the industrial economy rebounds [3]. - Investors can gain exposure to FedEx through ETFs such as First Trust S&P 500 Diversified Dividend Aristocrats ETF and ProShares Trust ProShares Supply Chain Logistics ETF [4]. - As of the last check, FedEx shares are down 0.71% at $241.77 [4].

Company Performance - FedEx's stock closed at $256.12, reflecting a -0.14% change from the previous day, underperforming the S&P 500's gain of 0.01% [1] - Over the past month, FedEx shares have decreased by 7.96%, which is worse than the Transportation sector's decline of 4.38% and the S&P 500's loss of 2.26% [1] Upcoming Earnings - FedEx is expected to release its earnings report on March 20, 2025, with analysts forecasting earnings of $4.59 per share, indicating a year-over-year growth of 18.91% [2] - The Zacks Consensus Estimate for revenue is projected at $21.89 billion, representing a 0.89% increase from the previous year [2] Full Year Estimates - For the full year, analysts anticipate earnings of $19.14 per share and revenue of $87.6 billion, reflecting changes of +7.53% and -0.06% respectively from the prior year [3] Analyst Estimates and Revisions - Recent changes to analyst estimates for FedEx are crucial as they often indicate short-term business trends, with positive revisions suggesting optimism about the company's profitability [4] - The Zacks Rank system, which incorporates estimate changes, has a history of outperforming the market, with 1 ranked stocks averaging a +25% annual gain since 1988 [5][6] Valuation Metrics - FedEx is currently trading at a Forward P/E ratio of 13.4, which is lower than the industry average of 15.72, suggesting a relative discount [7] - The company has a PEG ratio of 1.06, compared to the industry average PEG ratio of 1.38, indicating favorable growth prospects relative to its valuation [8] Industry Context - The Transportation - Air Freight and Cargo industry, which includes FedEx, has a Zacks Industry Rank of 223, placing it in the bottom 12% of over 250 industries [9] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the competitive landscape [9]

Core Insights - SaverOne's U.S. distributor, Motor Supply, has completed the installation of its safety technology across MDM Express's fleet of 20 trucks, marking a significant milestone in the company's U.S. market expansion [1][2][3] Group 1: Company Developments - The successful pilot project with MDM Express serves as a key reference point that could attract interest from other FedEx contractors [2] - CEO Ori Gilboa emphasized the safety benefits of SaverOne's technology, viewing this deployment as a strategic entry into the broader FedEx contractor network [3] - MDM Express's owner highlighted the commitment to safety and operational efficiency through the integration of SaverOne's technology [3] Group 2: Technology and Market Impact - SaverOne's system addresses driver distraction caused by mobile phone use, which is a leading cause of road accidents, with the annual cost of such accidents in the U.S. estimated at $870 billion [4] - The technology allows drivers to access navigation while blocking distracting applications, thereby enhancing safety [4] - The company targets commercial and private vehicle fleets, vehicle manufacturers, and insurance companies, with a focus on the U.S., Israeli, and European markets [5] Group 3: Future Outlook - SaverOne anticipates that upcoming EU regulations will increase demand for its cellular distraction prevention systems [5] - The company's strategy includes providing technology to aftermarket customers and collaborating with OEM manufacturers for integration during vehicle production [6]

Core Viewpoint - FedEx stock has experienced volatility due to concerns over new tariffs affecting logistics demand, despite a significant increase in stock value since the beginning of 2023 [1][2]. Financial Performance - FedEx's revenue declined by 7%, from $93.5 billion in 2022 to $87.4 billion in the trailing twelve months, attributed to decreased e-commerce activity, inflationary pressures, and weakened international shipping demand [3]. - The operating margin contracted by 30 basis points, from 7.0% to 6.7%, while the adjusted net income margin fell by 110 basis points, representing a 19% drop [4]. - Earnings per share decreased from $20.61 in 2022 to $16.92 in the most recent twelve-month period [4]. Valuation and Market Outlook - Despite weak financial performance, investors have assigned a higher valuation multiple to FedEx stock, partly due to plans for a spin-off of its freight division, which is expected to enhance profitability [5]. - FedEx's estimated valuation is $315 per share, indicating over 25% upside potential, with expected revenue growth of around 5% and earnings growth of over 28% in the next two years [6]. Strategic Positioning - Operational improvements position FedEx well for enhanced profitability, even amidst trade tensions and potential new tariffs [7]. - For investors seeking less volatility, the Trefis High Quality Portfolio has outperformed the S&P 500, providing better returns with reduced risk [7].

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Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends FedEx. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Stock Performance - FedEx closed at $275 06, marking a -1 29% move from the prior day, underperforming the S&P 500's daily loss of 0 47%, the Dow's loss of 0 31%, and the Nasdaq's decrease of 0 51% [1] - Over the past month, FedEx shares lost 0 95%, lagging behind the Transportation sector's gain of 4 36% and the S&P 500's gain of 1 67% [1] Earnings and Revenue Projections - FedEx's upcoming earnings report is set for March 20, 2025, with an EPS projection of $4 59, reflecting an 18 91% increase compared to the same quarter last year [2] - Revenue for the upcoming quarter is projected at $21 89 billion, a 0 89% rise from the equivalent quarter last year [2] - For the entire fiscal year, earnings are projected at $19 14 per share, a 7 53% increase, while revenue is expected to be $87 6 billion, a slight -0 06% change from the previous year [3] Analyst Estimates and Valuation - Recent modifications to analyst estimates reflect shifting short-term business dynamics, with upward revisions indicating positivity towards the company's operations and profitability [4] - The Zacks Consensus EPS estimate has decreased by 0 02% over the last 30 days, and FedEx currently holds a Zacks Rank of 3 (Hold) [6] - FedEx's Forward P/E ratio is 14 56, below the industry average of 15 25, and its PEG ratio is 1 15, also below the industry average of 1 25 [7] Industry Overview - The Transportation - Air Freight and Cargo industry, part of the Transportation sector, holds a Zacks Industry Rank of 218, placing it in the bottom 14% of all 250+ industries [8] - The Zacks Industry Rank shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - The Initiative for a Competitive Inner City (ICIC) announced the winners of the 2024 Inner City 100 (IC100) awards, recognizing the 100 fastest-growing businesses in under-resourced communities across the U.S. [1] - The 2024 IC100 winners achieved an average revenue growth of 347% from 2019 to 2023, showcasing resilience and ingenuity [1][6] Special Recognition Awards - ICIC presented three special awards to highlight exceptional achievements among the IC100 honorees [2] - The Chevron Dorothy A. Terrell Community Impact Award was awarded to Northern Real Estate Urban Ventures (NREUV) for its commitment to community development [3] - The FedEx Champion of Global Entrepreneurship Award was given to Electronic Responsible Recyclers (ER2) for its contributions to global trade and sustainability [4] - The ICIC Business Growth Award recognized Mainstream Medical Devices as the top-ranked IC100 company by revenue growth [5] Economic Impact - ICIC CEO Steve Grossman emphasized that the IC100 awards demonstrate how investing in under-resourced communities leads to exceptional results and sustainable growth [6] - The 2024 IC100 winners represent diverse industries and geographies, serving as examples of how inclusive economic growth benefits individuals and the broader economy [6] Eligibility Criteria - To qualify for the IC100, companies must be independently operated, privately held, for-profit businesses with revenues of at least $50,000 in 2019 and $500,000 in 2023, headquartered in under-resourced communities [9]