Core Insights - FedEx Corporation (FDX) is currently viewed as an attractive investment opportunity due to its low valuation, with a forward price-to-sales (P/S) ratio of 0.61X, which is below the Zacks Transportation—Air Freight and Cargo industry average, the S&P 500, and its competitor United Parcel Service (UPS) [1] Financial Performance - FedEx reported better-than-expected earnings per share and revenues for Q1 of fiscal 2026, driven by cost-cutting measures and strong domestic delivery performance [5] - The company faced a $150 million headwind from the global trade environment and a $130 million headwind from the expiration of a contract with the U.S. Postal Service, yet domestic average daily volumes increased by 5% [7] - Total freight revenues declined by 8% year-over-year, with U.S. freight revenues dropping significantly by 47% [8] - FedEx anticipates revenue growth of 4-6% year-over-year for fiscal 2026, with adjusted earnings per share projected between $17.2 and $19 [8] Stock Performance - Despite the earnings beat, FedEx shares have declined in double digits year-to-date, underperforming compared to GXO Logistics, which has gained over 25% this year [12] - Over the past year, FedEx shares have decreased by 10%, while UPS and GXO Logistics have seen declines of 35.1% and 6.2%, respectively [15] Shareholder Initiatives - FedEx has raised its quarterly dividend by 5.1% to $1.45 per share and repurchased $3 billion worth of shares in fiscal 2025, returning a total of $4.3 billion to shareholders through dividends and buybacks [16] Challenges Ahead - The company is facing challenges such as weak international package volumes and economic uncertainty due to tariffs, with expectations of a $1 billion headwind in fiscal 2026 [17]

Core Insights - Notable companies reporting quarterly results include Disney, Fortinet, and Shopify, all of which have favorable Zacks Rank ratings [1] Disney – DIS - Disney is expected to report its fiscal third quarter results, with a Zacks Rank of 2 (Buy) [2] - The stock has risen over 30% in the last year, reaching a 52-week high of $124 in late June [2] - Cost-cutting initiatives and strategic pivots have led to strong performance, with major box office hits like Inside Out 2 and Lilo & Stitch grossing over $1 billion globally [3] - Streaming platforms Disney+ and Hulu have seen increased profitability, aided by measures against password sharing and the introduction of extra-member fees [3] - Q3 is projected to see 2% growth in revenue and 6% growth in earnings [3] - The forward earnings multiple stands at 20.1X, with a price-to-sales ratio below 2X, indicating value [4] Fortinet – FTNT - Fortinet, with a Zacks Rank of 2 (Buy), is gaining traction due to its AI-powered threat detection and post-quantum cryptography readiness [5] - Following a record Q1, Q2 revenue is expected to reach $1.62 billion, a 13% increase, with EPS projected to rise 3% to $0.59 [6] - Fortinet has exceeded earnings expectations for 29 consecutive quarters since May 2018, contributing to a stock gain of over 70% in the past year [6] Shopify – SHOP - Shopify holds a Zacks Rank of 1 (Strong Buy) and has seen its stock increase over 15% year-to-date, with a remarkable 140% gain over the last year [10] - The introduction of AI-powered tools has enhanced its commerce platform, driving popularity among merchants [10] - Strategic partnerships with Meta Platforms, Amazon, and TikTok have expanded Shopify's ecosystem [11] - Q2 sales are projected to rise 24% to $2.54 billion, with EPS expected to increase 8% to $0.28 [11] - Analysts anticipate Gross Merchandise Volume (GMV) to reach $81 billion, marking seven consecutive quarters of over 20% GMV growth [11] Conclusion - Disney, Fortinet, and Shopify are highlighted as key stocks to watch as they prepare to report quarterly results, with potential for further upside [13]