Core Viewpoint - The article discusses the investment position of Parkev Tatevosian, CFA, and mentions the involvement of The Motley Fool with FedEx, highlighting their recommendation and potential compensation structure [1] Company Involvement - The Motley Fool has positions in and recommends FedEx, indicating a positive outlook on the company's stock [1] - Parkev Tatevosian is affiliated with The Motley Fool, which may influence his opinions and recommendations regarding stocks [1] Compensation Structure - Parkev Tatevosian may receive compensation for promoting The Motley Fool's services, suggesting a potential conflict of interest in his analysis [1]

Core Insights - FedEx (FDX) and United Parcel Service (UPS) are leading global package delivery companies, each offering a variety of shipping services and logistics solutions [1][2] - The analysis aims to determine which company currently holds a competitive edge and represents a smarter investment opportunity [2] FedEx (FDX) Overview - FDX is focusing on cost-cutting measures due to declining package volumes, influenced by geopolitical uncertainties, tariffs, and high inflation [3][4] - The company has shelved its revenue and earnings forecast for fiscal 2026, following three consecutive quarters of lowered outlooks for fiscal 2025 [4] - FDX's DRIVE initiatives have resulted in savings of $2.2 billion in fiscal 2025 and $1.8 billion in fiscal 2024, with an expectation of $1 billion in transformation-related savings for fiscal 2026 [5] - In June 2025, FDX increased its quarterly dividend by 5.1% to $1.45 per share, and repurchased $3 billion worth of shares in fiscal 2025, returning a total of $4.3 billion to shareholders [6] - FDX's liquidity position is strong, with a current ratio of 1.19 at the end of fiscal 2025, indicating sufficient assets to cover short-term obligations [7] United Parcel Service (UPS) Overview - UPS is experiencing a decline in package volumes due to economic uncertainty and high labor costs, prompting the company to implement cost-cutting measures [8][9] - UPS plans to reduce its workforce by 20,000, approximately 4% of its global workforce, and shut down 73 facilities to streamline operations [10] - The company has agreed to reduce its business with Amazon by over 50% by June 2026, as Amazon was not its most profitable customer [12] - UPS announced a 0.6% increase in its quarterly dividend to $1.64 per share, but concerns about the sustainability of this dividend arise due to an elevated payout ratio of 84% [13] - UPS's long-term debt burden was $19.5 billion at the end of Q1 2025, with a long-term debt-to-capitalization ratio of 55.4%, higher than the industry average [14] Comparative Analysis - Year-to-date, UPS shares have declined by 18.8%, while FDX shares have decreased by 15.2%, indicating better performance for FDX [16] - In terms of valuation, UPS has a forward P/E ratio of 13.66, compared to FDX's 12.76, suggesting that UPS is more expensive relative to its earnings [19] - The Zacks Consensus Estimate predicts a 4.2% decline in UPS's 2025 sales and a 9.2% drop in earnings, while FDX is expected to see a 1.6% increase in revenues and a 1.3% growth in earnings for fiscal 2026 [23][24] - FDX is projected to have a higher earnings growth rate of 10.4% over the next five years compared to UPS's 7.4% [26] - Overall, FDX appears to be a more attractive investment option than UPS based on valuation, price performance, and financial leverage [26]

智通财经7月9日电，花旗集团将联邦快递目标价格从259美元上调至278美元。 ...

FedEx Corp ( FDX ) & United Parcel Service ( UPS ), two transportation companies that deliver goods in the U.S. and internationally, have both been beaten down over the past year. At the time of writing, both areContributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due dil ...

Core Viewpoint - FedEx is facing growth challenges due to economic headwinds, but its strong financials and dividend yield make it a reliable investment option [2][9]. Financial Performance - For the fiscal year ending May 31, FedEx reported revenue of $22.2 billion, nearly unchanged from the previous year's $22.1 billion, with net income increasing from $1.47 billion to $1.65 billion [4]. - The company exceeded Wall Street expectations with adjusted earnings per share (EPS) of $6.07, surpassing estimates of $5.84, attributed to effective cost-cutting measures [5]. Dividend Analysis - FedEx currently pays a quarterly dividend of $1.45, recently increased by 5% from $1.38, resulting in an annual payout of $5.80 per share [6]. - The payout ratio stands at approximately 33%, indicating sustainability and potential for future dividend increases [7]. Growth Outlook - FedEx anticipates flat to 2% revenue growth for the current fiscal year, reflecting ongoing economic challenges [5]. - Despite recent struggles, the company is well-positioned to benefit from the growth in e-commerce and international trade in the long term [9]. Investment Consideration - The stock has experienced a 19% decline in value this year, but its fundamentals remain solid, making it a potential buy during market weakness [10]. - Trading at 12 times estimated future earnings, FedEx is viewed as a solid income-generating stock for long-term investors [10].

Core Viewpoint - FedEx has received the "Pharmaceutical Logistics Independent Validation Excellence Center" certification from IATA for its Asia-Pacific hub at Guangzhou Baiyun International Airport, marking it as the first global logistics company to achieve this certification in both air hub and ground operations [1] Company Summary - FedEx's certification ensures the highest standards in handling and transporting temperature-sensitive healthcare products, such as pharmaceuticals and vaccines, within its air logistics network [1] - The President of FedEx China, Xu Baoyan, emphasized the growing demand for professional logistics services in China's healthcare sector, highlighting the company's unique advantages in providing one-stop global delivery services and intelligent digital solutions [1] - FedEx's data indicates that the Chinese pharmaceutical logistics market is expected to experience significant growth, with a projected compound annual growth rate (CAGR) of 10% to 12% from 2025 to 2030 [1] Industry Summary - In the healthcare and pharmaceutical sectors, air logistics customers require closed-loop temperature control services to ensure product stability and efficacy [1] - FedEx leverages decades of expertise, a robust global transportation network, and customized time-sensitive delivery services to provide tailored solutions for clinical trials, biopharmaceuticals, and vaccine transportation [1] - FedEx operates global life sciences centers located in Incheon (South Korea), Singapore, Tokyo (Japan), Mumbai (India), Memphis (USA), and Veldhoven (Netherlands), with 19 core facilities worldwide adhering to the quality framework of the Pharmaceutical Logistics Independent Validation Excellence Center by May 2025 [1]

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential [1] - The popularity of insurance companies in the Philippines since 2014 indicates a shift in investment strategies among local investors [1] - The diversification of investment portfolios across various industries and market capitalizations is becoming a common practice among investors [1] Investment Trends - There is a notable trend of investors moving from traditional savings in banks and properties to stock market investments for better returns [1] - The entry into the US market by investors from the Philippines reflects a growing interest in international investment opportunities [1] - The use of platforms like Seeking Alpha for analysis and comparison of market trends is becoming increasingly popular among investors [1] Sector Focus - Key sectors of interest include banking, telecommunications, logistics, and hospitality, indicating a broad investment strategy [1] - The logistics and shipping industries are particularly highlighted as areas of investment, suggesting their importance in the current economic landscape [1] - The trend of holding stocks for retirement alongside trading for profits shows a balanced approach to investment [1]

Core Insights - FedEx is facing challenges but is at the bottom of its decline as its turnaround and optimization strategy gains traction [1] - The planned spin-off of the freight segment is progressing well, with increasing package volume in the core Express segment and improved profitability [2] - The company has a robust capital return outlook, trading at a low valuation with a reliable dividend yield [3] Financial Performance - In fiscal Q4 2025, FedEx reported revenue of $22.2 billion, a 0.5% increase year-over-year, driven by the core Express segment [5] - The Freight segment saw a 3.8% decline, representing about 10% of total business [5] - The company achieved $2.2 billion in DRIVE-related savings and a 5.2% increase in operating income, with adjusted earnings of $6.07, up 12% year-over-year [6] Guidance and Market Sentiment - FedEx issued mixed guidance for Q2, forecasting flat to 2% revenue growth but a weaker earnings forecast of $3.70, which is $0.35 below consensus [7] - Despite the weak earnings forecast, growth is expected to accelerate compared to revenue, with capital return remaining safe [8] - Analysts have mixed responses to FedEx's Q4 results, with a 12-month stock price forecast averaging $285.75, indicating a potential upside of 28.68% [10] Shareholder Returns - FedEx has consistently increased its dividend payments, with a payout ratio suggesting sustainable double-digit growth [4] - Share buybacks have reduced the share count by 4.5% in F2025, enhancing per-share distribution [4] - Institutions own about 85% of FedEx stock, providing a strong support base as they continue to buy [11]

Core Viewpoint - FedEx reported strong fiscal Q4 results but saw its stock decline by 3%, impacting UPS shares as well [1][2] FedEx Q4 Results - FedEx's Q4 earnings increased by 12% to $6.07 per share, exceeding EPS estimates of $5.93 [3] - Q4 sales reached $22.22 billion, surpassing estimates of $21.73 billion and slightly up from $22.1 billion in the same quarter last year [3] - FedEx has missed the Zacks EPS Consensus in two of the last four quarters, with an average EPS surprise of -5.53% [4] UPS Q2 Expectations - UPS's Q2 sales are projected to decline by 4% to $20.84 billion compared to $21.82 billion a year ago [5] - Expected Q2 EPS for UPS is forecasted to fall by 12% to $1.57 from $1.79 in the prior year quarter [5] - UPS has exceeded earnings expectations in three of its last four quarterly reports, with an average EPS surprise of 2.42% [6] Performance & Valuation Comparison - Both FedEx and UPS stocks are down 20% this year, but FedEx has a total return of +86% over the last five years, outperforming UPS's +11% [7] - FedEx and UPS have lower P/E valuations at 11.7X and 14.2X forward earnings, respectively, compared to the S&P 500's 23.5X [8] Dividend Comparison - UPS currently offers a higher annual dividend yield of 6.52%, compared to FedEx's 2.41% and the S&P 500's average of 1.22% [10] Bottom Line - FedEx and UPS are considered appealing buy-the-dip targets in terms of value, with FedEx potentially being the better long-term pick despite UPS's attractive dividend [11]

Core Insights - FedEx reported strong fourth-quarter fiscal 2025 results, beating both earnings and revenue estimates, but provided a dismal outlook, leading to a more than 5% drop in shares after market close [1][3] Financial Performance - Earnings per share for FedEx were $6.07, surpassing the Zacks Consensus Estimate of $5.93 and improving from $5.41 a year ago [3] - Revenues increased by 0.5% year over year to $22.2 billion, exceeding the consensus estimate of $21.7 billion [3] Future Outlook - For the first quarter of fiscal 2026, FedEx expects revenues to be flat or increase by up to 2%, with adjusted earnings per share projected between $3.40 and $4.00 [4] - The Zacks Consensus Estimate for revenues indicates a growth of 0.21%, while the estimate for earnings per share is $4.05 [4] - FedEx did not provide earnings and revenue forecasts for fiscal 2026 due to uncertainties surrounding U.S. trade policies, particularly with China [5] Cost Management - FedEx achieved its $4 billion cost-cutting goal and aims to trim an additional $1 billion in the upcoming fiscal year [5] ETF Impact - The sluggish trading is expected to affect ETFs with high allocations to FedEx, including ProShares Supply Chain Logistics ETF, iShares U.S. Transportation ETF, First Trust Nasdaq Transportation ETF, and Pacer Industrials and Logistics ETF [2] ETF Details - ProShares Supply Chain Logistics ETF holds 40 stocks, with FedEx accounting for 4.6% of assets, and has an asset base of $0.9 million [6][7] - iShares U.S. Transportation ETF includes 44 securities, with FedEx making up 4.5% of assets and has $657.1 million in AUM [8][9] - First Trust Nasdaq Transportation ETF tracks 38 transportation securities, with FedEx accounting for 3.6% of the basket and has an asset base of $28.4 million [10][11] - Pacer Industrials and Logistics ETF tracks 109 stocks, with FedEx representing 3.1% of the holdings and has accumulated $1.6 million in assets [12][13]