Core Viewpoint - The transportation sector is experiencing its longest streak of gains since July, with a focus on stocks like CSX and FedEx, which are seen as strong investment opportunities [1]. Company Analysis CSX - CSX is currently rated as an unqualified buy, having recently broken out of a key resistance level [1]. - The stock has a historical support level at 35.5, indicating relatively small downside risk for traders, while investors may consider giving it more room [2]. - A significant resistance level is noted at 36-37, which the stock has struggled to surpass, but a breakout could lead to a rise into the low 40s [3]. FedEx - FedEx is undergoing a turnaround, with recent earnings reports showing positive results and subsequent price target increases from Wall Street [3]. - The company is expected to perform better in terms of revenue, pricing power, margins, and earnings per share in the upcoming year compared to the current year [4]. - A historical resistance level at 300 has been challenged multiple times, and there is optimism that the stock will break out, supported by both technical and fundamental factors [5]. Industry Insights - The global logistics sector is highlighted as a strong market, with companies like Expediters International providing significant revenue exposure outside the US [6]. - The current bull market for global logistics is expected to benefit companies like FedEx and CSX, as well as other logistics-related firms such as Prologis [6].

Industry Insights - The data center space may be stabilizing after a challenging period, indicating a potential recovery in the market [1] - The artificial intelligence sector, particularly related to data centers, has faced significant challenges, including financial constraints that may hinder ongoing expansion [2][3] - The industry is experiencing barriers such as worker shortages, limited materials, and insufficient power supply, leading to Wall Street's fatigue with aggressive expansion plans [3] Company Analysis - Nike, Inc. (NYSE:NKE) is undergoing a significant turnaround under CEO Elliott Hill, who is addressing past management failures and restoring the brand's focus on sports [9][10] - Despite positive developments in Nike's U.S. business, the stock has faced a decline due to challenges in the Chinese market, which has been negatively impacted by previous management decisions [10][11] - FedEx Corporation (NYSE:FDX) is recognized for its strong competitive position and successful pivot to business-to-business services, particularly in the pharmaceutical delivery sector [12][13] - FedEx's recent performance has been impressive, showcasing resilience despite external challenges such as tariffs and a slowing economy, with a recommendation to maintain long positions in the stock [13]

We recently published 8 Stocks on Jim Cramer’s Radar.  FedEx Corporation (NYSE:FDX) is one of the stocks on Jim Cramer's radars. Logistics giant FedEx Corporation (NYSE:FDX) is a regular feature of Cramer’s morning show. Cramer has repeatedly shared optimistic views about the firm’s CEO and its ongoing turnaround. His optimism is also matched by analysts. For instance, Stifel kept a Buy rating and set the share price target to $305 for FedEx Corporation (NYSE:FDX)’s shares on December 17th. The firm remar ...

FedEx (NYSE: FDX) and UPS (NYSE: UPS) just wrapped up earnings that tell strikingly different stories. ...

Group 1 - FedEx Corporation reported strong quarterly results with higher-than-expected revenues and a 70-cent earnings beat [1] - Management raised the low end of their full-year forecast for both revenue and earnings, indicating positive growth prospects [1] - The company has focused on cost-cutting and optimizing its delivery network, which has started to yield positive results [1] Group 2 - FedEx is recognized for its lean operations and significant growth in e-commerce, positioning it well for future performance [2] - The freight division has been struggling, but FedEx plans to spin it off next year, which may improve overall company performance [1] - The company is highlighted as a potential standout in the upcoming earnings reports, reflecting confidence in its operational efficiency [2]

Core Insights - FedEx reported fiscal second-quarter results that exceeded Wall Street expectations for both earnings and revenue, raising its full-year guidance due to stronger package pricing, higher U.S. volumes, and ongoing cost-cutting initiatives [1] Financial Performance - Adjusted earnings for the quarter were $4.82 per share, surpassing analysts' expectations of $4.11 [1] - Revenue increased to $23.5 billion, exceeding the consensus estimate of $22.78 billion [1] Operational Highlights - Consolidated operating performance improved with strengthened pricing across U.S. domestic and International Priority services, alongside growth in U.S. domestic package volumes [2] - Structural cost reductions remained on track, although gains were partially offset by higher wage and transportation expenses, global trade policy changes, and costs related to grounding the MD11 aircraft fleet [2] Segment Performance - The FedEx Express segment showed stronger operating results, with operating margin expanding by 100 basis points to 7.7%, exceeding the consensus expectation of 6.4% [3] - FedEx Freight segment results declined due to lower shipment volumes and rising wage expenses, incurring $152 million in one-time spin-off-related costs during the quarter [4] Future Outlook - For fiscal 2026, FedEx raised its revenue growth forecast to 5%–6% from a prior range of 4%–6% and increased its adjusted earnings outlook to $14.80–$16.00 per share before mark-to-market pension adjustments, compared to the previous range of $14.20–$16.00 [5] - The planned spin-off of FedEx Freight is on schedule for June 1, 2026, with the business expected to trade on the New York Stock Exchange under the ticker symbol FDXF [4]

Core Insights - FedEx Corporation (FDX) reported strong second-quarter fiscal 2026 results, with earnings and revenues exceeding expectations, showcasing a year-over-year earnings increase of 19% and revenue growth of 6.8% [2][3][9] Financial Performance - Quarterly earnings per share (EPS) reached $4.82, surpassing the Zacks Consensus Estimate of $4.07, with share repurchases contributing an additional 5 cents per share [2][9] - Revenues totaled $23.4 billion, exceeding the Zacks Consensus Estimate of $22.8 billion [3][9] - Operating income increased by 31.4% to $1.38 billion, with operating margin rising to 5.9% from 4.8% year-over-year [5][9] Guidance and Outlook - FedEx raised its full-year fiscal 2026 guidance, now expecting revenue growth of 5-6% (previously 4-6%) and EPS between $14.80 and $16.00, up from $14.20-$16.00 [4] - The anticipated spin-off of FedEx Freight is expected to be completed on June 1, 2026, as a separate publicly traded company [6][9] Segment Performance - FedEx Express segment revenues grew 8% year-over-year to $20.4 billion, driven by higher package yields and cost savings [7] - FedEx Freight revenues declined by 2% to $2.14 billion, impacted by lower shipments and higher wage rates, alongside one-time spin-off-related costs of $152 million [8] Capital and Liquidity - FedEx ended the quarter with cash and cash equivalents of $6.57 billion, an increase from $6.16 billion in the previous quarter [11] - The company completed $276 million in share repurchases during the quarter, with $1.3 billion remaining available for future repurchases [11] Cost Management and Investments - FedEx anticipates permanent cost reductions of $1 billion from transformation-related savings and plans to invest $4.5 billion in capital expenditures focused on network optimization and efficiency improvements [13]

Core Viewpoint - FedEx has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. FedEx's Earnings Outlook - FedEx is projected to earn $18.00 per share for the fiscal year ending May 2026, with no year-over-year change expected [8]. - Over the past three months, the Zacks Consensus Estimate for FedEx has increased by 0.4%, reflecting a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - FedEx's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].

Financial Performance - FedEx reported second-quarter revenue of $23.5 billion, exceeding analyst estimates of $22.79 billion [1] - The company posted adjusted earnings of $4.82 per share, surpassing estimates of $4.11 per share [1] Guidance Update - FedEx raised its fiscal 2026 revenue growth expectation to 5% to 6%, up from the previous guidance of 4% to 6% [2] - The low end of adjusted earnings guidance was increased from a range of $17.20 to $19 per share to a new range of $17.80 to $19 per share, compared to estimates of $18.22 per share [3] Analyst Ratings and Price Targets - B of A Securities raised the price target for FedEx from $285 to $315 while maintaining a Neutral rating [4] - Wells Fargo increased its price target from $290 to $295 with an Equal-Weight rating [4] - Stifel raised its price target from $305 to $328 while maintaining a Buy rating [4] - Jefferies increased its price target from $315 to $326 while maintaining a Buy rating [4] - JP Morgan raised its price target from $285 to $294 while maintaining a Neutral rating [4] - BMO Capital increased its price target from $265 to $290 while maintaining a Market Perform rating [4]

Financial Performance - FedEx reported second-quarter revenue of $23.5 billion, exceeding analyst estimates of $22.79 billion [1] - The company posted adjusted earnings of $4.82 per share, surpassing estimates of $4.11 per share [1] Guidance Update - FedEx raised its fiscal 2026 revenue growth expectation to 5% to 6%, up from the previous guidance of 4% to 6% [2] - The low end of adjusted earnings guidance was increased from a range of $17.20 to $19 per share to a new range of $17.80 to $19 per share, compared to estimates of $18.22 per share [3] Analyst Ratings and Price Targets - B of A Securities raised the price target for FedEx from $285 to $315 while maintaining a Neutral rating [4] - Wells Fargo increased its price target from $290 to $295 with an Equal-Weight rating [4] - Stifel raised its price target from $305 to $328 while maintaining a Buy rating [4] - Jefferies increased its price target from $315 to $326 while maintaining a Buy rating [4] - JP Morgan raised its price target from $285 to $294 while maintaining a Neutral rating [4] - BMO Capital increased its price target from $265 to $290 while maintaining a Market Perform rating [4]