Is FedEx Stock Underperforming the Nasdaq?

Core Insights - FedEx Corporation has a market capitalization of $65 billion and operates globally in transportation, e-commerce, and business services through its Federal Express and FedEx Freight segments [1] - The company is recognized as a large-cap stock, having established itself as a leader in express delivery and supply chain management [2] Stock Performance - FedEx shares have decreased by 9.4% from their 52-week high of $302.02, but have increased by 18.5% over the past three months, outperforming the Nasdaq Composite's 7.7% gain during the same period [3] - Year-to-date, FedEx stock is down 2.7%, significantly trailing the Nasdaq's 21% gain, and has declined 9.6% over the past 52 weeks compared to the Nasdaq's 22.6% return [4] Financial Results - Following the Q1 2026 results released on September 18, FedEx shares rose by 2.3% due to strong year-over-year earnings growth, with adjusted operating income reaching $1.30 billion and adjusted EPS at $3.83, driven by robust U.S. domestic package revenue and cost reductions [5] - The company projects a revenue growth of 4% - 6% and an adjusted EPS of $17.20 - $19 for fiscal 2026, excluding certain costs [5] Strategic Developments - FedEx completed $500 million in share repurchases during the quarter and is progressing towards the planned spin-off of FedEx Freight in June 2026 [6] - In contrast, United Parcel Service (UPS) has seen a decline of 24.3% year-to-date and 29.6% over the past 52 weeks, indicating FedEx's relative strength in the market [6] Analyst Sentiment - Despite recent stock underperformance, analysts maintain a moderately optimistic outlook on FedEx, with a consensus rating of "Moderate Buy" from 30 analysts, and the stock is currently trading above the mean price target of $268.52 [7]