Do You Believe in the Upside Potential of FedEx Corporation (FDX)?

Core Insights - Ariel Investments' "Ariel Global Fund" reported a +4.99% return in Q3 2025, underperforming the MSCI ACWI Index (+7.62%) and the MSCI ACWI Value Index (+6.13%) [1] Group 1: Fund Performance - The global equities market experienced a rally in Q3 2025, driven by AI enthusiasm, resilient corporate earnings, the first U.S. rate cut of the year, and targeted policy easing across key regions [1] - The Ariel Global Fund's performance was +4.99% for the quarter, indicating a lag behind broader market indices [1] Group 2: FedEx Corporation Analysis - FedEx Corporation (NYSE:FDX) was highlighted as a key stock, with a one-month return of 9.89% but a 52-week decline of 8.66% [2] - As of November 18, 2025, FedEx's stock closed at $263.08, with a market capitalization of $62.075 billion [2] - The company is making progress in improving margins under new leadership, with a planned spin-off of FedEx Freight (LTL) by June 2026 expected to unlock significant value [3] - Additional catalysts for FedEx include the upcoming anniversary of the USPS contract termination in October 2025, clarity on tariffs, and potential cyclical recovery [3] Group 3: Hedge Fund Interest - FedEx Corporation was held by 67 hedge fund portfolios at the end of Q2 2025, an increase from 62 in the previous quarter [4] - Despite its potential, the company is not considered among the top 30 most popular stocks among hedge funds [4] - The revenue for FedEx increased by 3% year-over-year in Q1 2026, driven by strength in U.S. domestic package services [4]