Core Insights - FedEx Corporation (NYSE: FDX) is a global provider of document, package, and less than truckload (LTL) deliveries, operating in over 200 countries [1] - The company has two main segments: FedEx Express and FedEx Freight [1] Company Overview - FedEx is recognized for its extensive delivery services, which include both document and package deliveries [1] - The company announced developments in its FedEx Freight segment late last year, indicating ongoing strategic initiatives [1] Analyst Background - The author has a master's degree in Analytics and a bachelor's degree in Accounting, with over 10 years of experience in the investment arena [1]

《中国民航报》、中国民航网 记者张人尹 报道：6月5日是第 54 个世界环境日，联邦快递宣布携手中华 环保联合会启动2025"益起行 益起动 —— 守护河道一公里"大型环保公益活动项目。该项目以"强化水 环境保护意识凝聚社会共治力量"为核心，展开多元化的全国河道生态守护公益行动，助力推动美丽中 国建设，加快可持续发展。 （联邦快递供图） 中华环保联合会副主席兼秘书长谢玉红表示："'守护河道一公里'是保护水资源、维护生态环境的重要 举措。中华环保联合会致力于发挥桥梁和枢纽作用，整合政策、技术、社会资源，呼吁社会各界以实际 行动守护母亲河，打造全民参与水环境保护的公益平台。联邦快递具有深厚的公益行动和可持续发展经 验，相信通过此次双方的共同努力，能够让项目更具广泛性、专业性，产生更深远的影响力。" 启动仪式现场，联邦快递还携手中华环保联合会发布了《"守护河道一公里" 公益活动倡议书》，提出 争当"河道环境守护者、绿色生活践行者、环保理念传播者、生态河道建设者"四项行动主张， 鼓励公 众将守护河道、保护环境的意识融入日常生活。 作为绿色物流的先行者，联邦快递长期关注可持续发展，在加强经营活动的可持续性的同时，也坚持 ...

Group 1 - FedEx has announced an agreement with Neste to supply over 3 million gallons of sustainable aviation fuel (SAF) at Los Angeles International Airport, with SAF making up at least 30% of the blend [1] - This SAF supply is expected to account for one-fifth of FedEx's total aviation fuel consumption at the airport for the fiscal year 2025, with deliveries starting in May and continuing for one year [1] - FedEx aims to achieve carbon-neutral operations globally by 2040 and has been actively pursuing sustainable aviation technologies, including a partnership with Boeing for the ecoDemonstrator project [1] Group 2 - In China, FedEx is advancing its carbon-neutral goal through various environmental initiatives, including a 20% electrification rate of its delivery vehicle fleet [2] - The company has installed a rooftop solar photovoltaic system at its Beijing ground operations station, which reduces CO2 emissions by 350 tons annually [2] - FedEx's China headquarters in Shanghai has received LEED Gold certification, and the company is involved in tree planting, beach clean-ups, and community service activities across multiple cities [2]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Core Insights - FedEx is a global leader in logistics, operating in over 220 countries and generating more than $87 billion in annual revenue [1] Business Segments - The Federal Express segment constitutes 85% of FedEx's business, while freight accounts for an additional 11% [1]

Investment Rating - The report does not explicitly state an investment rating for the transportation and logistics industry Core Insights - The report highlights a positive trend in U.S. imports, with a 6.1% week-over-week increase as of May 18, outperforming seasonal expectations by 980 basis points and showing a 2.8% year-over-year increase [2] - Spot rates for truckload transportation have surged, with dry van rates increasing by 6.1% week-over-week, outperforming historical averages [3] - There are concerns regarding potential freight demand impacts due to tariffs, with expectations of a flat outlook for dry van spot rates in 2026 [6] Summary by Sections Import & Congestion Monitor - Container bookings from China to the U.S. are at five-year lows, down 27% compared to 2023, indicating subdued future demand [2] - The report notes a recovery in container imports at the Port of LA/LB, which increased by 24% week-over-week [2] Truckload and Rail Data - Spot rates for dry van, reefers, and flatbed have all increased week-over-week, with dry van rates now 4% higher year-over-year [3] - The dry van load-to-truck ratio increased by 57% week-over-week, indicating a tightening market [6] - Rail management teams express skepticism about the feasibility of transcontinental mergers due to regulatory barriers [7] Airfreight & Surface Transportation - Airfreight rates have been monitored closely due to tariff implications, with significant declines observed in key freight lanes, particularly the China-U.S. lane, which fell by 6% week-over-week [10] - The overall airfreight market is experiencing broad-based weakness, with all major lanes underperforming seasonal expectations year-to-date [10] Rail Performance - The report card for railroads indicates varying performance levels, with some railroads rated as excellent while others are fair or poor [9] - Regulatory challenges are highlighted as a significant barrier to potential mergers in the rail industry, with environmental impact studies being particularly burdensome [7]

Company Performance - FedEx's stock closed at $226.12, reflecting a -1.48% change from the previous day, underperforming the S&P 500's gain of 0.09% [1] - Over the past month, FedEx's stock has increased by 10.58%, which is lower than the Transportation sector's gain of 14.63% and the S&P 500's gain of 13.05% [1] Earnings Estimates - The upcoming EPS for FedEx is projected at $5.98, indicating a 10.54% increase year-over-year [2] - Revenue is expected to be $21.8 billion, representing a 1.41% decline compared to the same quarter last year [2] Fiscal Year Projections - For the entire fiscal year, earnings are estimated at $18.17 per share and revenue at $87.46 billion, showing changes of +2.08% and -0.23% respectively from the previous year [3] - Recent analyst estimate revisions indicate a positive outlook for FedEx's business and profitability [3] Valuation Metrics - FedEx has a Forward P/E ratio of 12.63, which is below the industry average of 14.31, suggesting it is trading at a discount [6] - The current PEG ratio for FedEx is 1.19, compared to the industry average PEG ratio of 1.78 [7] Industry Ranking - The Transportation - Air Freight and Cargo industry, which includes FedEx, has a Zacks Industry Rank of 226, placing it in the bottom 9% of over 250 industries [8] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [8]

Company Performance - FedEx's stock closed at $231.15, reflecting a -0.77% change from the previous day, underperforming the S&P 500's gain of 0.73% [1] - Over the past month, FedEx shares have increased by 10.69%, slightly underperforming the Transportation sector's gain of 10.92% but outperforming the S&P 500's gain of 9.07% [1] Upcoming Earnings - FedEx's upcoming earnings per share (EPS) are projected to be $6.03, indicating an 11.46% increase from the same quarter last year [2] - The consensus estimate for revenue is $21.8 billion, which represents a 1.41% decline from the equivalent quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at $18.21 per share and revenue at $87.46 billion, showing changes of +2.3% and -0.23% respectively from the previous year [3] Analyst Estimates - Changes in analyst estimates for FedEx are crucial as they reflect the evolving nature of near-term business trends, with upward revisions indicating analysts' positive outlook on the company's operations [4] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks FedEx at 3 (Hold), with a recent downward shift of 0.13% in the EPS estimate [6] - Historically, 1 ranked stocks have delivered an average annual return of +25% since 1988 [6] Valuation Metrics - FedEx has a Forward P/E ratio of 12.79, which is lower than the industry average of 14.04 [7] - The company also has a PEG ratio of 1.2, compared to the industry average PEG ratio of 1.74 [7] Industry Context - The Transportation - Air Freight and Cargo industry, to which FedEx belongs, has a Zacks Industry Rank of 196, placing it in the bottom 21% of over 250 industries [8]

Core Insights - Bank of America Securities analyst Ken Hoexter reiterated a Buy rating on FedEx Corporation, lowering the price forecast from $272 to $270 [1] - FedEx is making steady progress on structural cost initiatives, including Network 2.0, DRIVE, and Tri-Color, despite facing headwinds in international B2B volumes in F4Q25 [1] Financial Performance - Estimated EPS for 4Q25, FY25, and FY26 has been lowered by 9%, 3%, and 1% respectively, now projecting $5.55, $17.70, and $20.75, down from previous expectations of $6.10, $18.25, and $20.90 [4] - The price target now sits near the low end of the 12.5x–18.5x range due to macroeconomic pressures [5] Market Dynamics - Following a 90-day U.S.-China tariff reprieve, FedEx estimates the de minimis tariff on Chinese retailers has decreased to approximately 50% from 168%, although reporting complexity has increased [3] - FedEx has partnered with Amazon to handle select large and heavy parcels, providing a cost advantage over UPS, which is expected to be financially beneficial for FedEx [3][4] Volume Trends - March volumes were stable, but April saw a decline, and May experienced sharp Trans-Pacific declines as customers relied on existing inventories and awaited tariff relief [2]

Core Insights - Amazon and FedEx have entered into a new package delivery agreement, allowing FedEx to deliver certain packages for Amazon customers [1][6] - The partnership aims to enhance delivery capacity and efficiency, complementing Amazon's existing logistics network [3][6] - FedEx's expertise in handling large and heavy packages is a significant factor in this agreement [9][10] Group 1: Agreement Details - The deal was finalized in late February and is described as a multi-year agreement [1][6] - FedEx will serve as one of several third-party partners for Amazon, joining UPS and USPS [3][6] - Amazon's spokesperson indicated that the partnership is designed to balance delivery capacity [3] Group 2: Impact on Existing Partnerships - UPS has been a long-time delivery partner for Amazon, but the volume of packages handled by UPS will be reduced by over 50% [7][8] - The new partnership with FedEx is not intended to replace UPS but to provide additional capacity [8] Group 3: Financial Implications - Amazon is expected to experience "cost favorability" compared to its previous arrangements with UPS due to the new partnership with FedEx [6] - FedEx's executive noted that the new deal will be accretive to their system average in the domestic market [9] - The partnership will primarily involve heavier packages, which will increase FedEx's average weight per package and overall yield [10]