Here's Why Investors Should Give FedEx Stock a Miss Now

Core Insights - FedEx is facing challenges due to increased operating expenses, negatively affecting its performance and making it less attractive for investors [1] Financial Performance - The Zacks Consensus Estimate for FedEx's current-year earnings has decreased by 2.4% over the past 60 days, with a 1.04% downward revision for the next year, indicating a lack of confidence from brokers [2] - Year-to-date, FedEx's shares have declined by 21%, while the Transportation - Air Freight and Cargo industry has seen a 20.5% increase [3] Operating Expenses - In Q3 2025, FedEx's operating expenses rose by 2% year-over-year, driven by a 57% increase in business optimization costs and a 2% rise in labor expenses [4][7] - The Freight segment's performance declined due to weaker demand and lower fuel surcharges, despite a stronger base yield [8] Market Position - FedEx currently holds a Zacks Rank of 4 (Sell), reflecting its weak market position [6] - The company continues to experience significant pressure on its bottom line from elevated operating costs, raising concerns about the effectiveness of its cost-cutting strategies [7]