FedEx Corporation (NYSE: FDX) has been upgraded to a “strong-buy” rating by analysts at Argus, marking a significant endorsement for the logistics giant. This upgrade comes in the wake of positive financial results and increased price targets from several investment firms.
Analysts Boost Price Targets
On December 19, 2023, the Goldman Sachs Group raised its price objective for FedEx shares from $301.00 to $317.00 while maintaining a “buy” rating. Just a few days earlier, on December 17, Deutsche Bank Aktiengesellschaft also increased its price target, adjusting it from $276.00 to $322.00, accompanied by a “buy” recommendation.
In addition, Weiss Ratings reaffirmed a “buy (b-)” rating on December 29, and Wall Street Zen elevated FedEx’s rating from “buy” to “strong-buy” on January 17, 2024. Contrasting these bullish outlooks, JPMorgan Chase & Co. opted for a “neutral” rating in its latest report.
Overall, the consensus among analysts reflects a robust outlook for FedEx. Currently, one analyst has rated the stock as a strong buy, while fifteen have given it a buy rating, fourteen have issued a hold rating, and two have recommended selling. According to MarketBeat data, FedEx enjoys an average rating of “hold” with a consensus target price of $303.86.
Strong Earnings Performance
FedEx recently reported its earnings results on December 18, 2023, revealing an earnings per share (EPS) of $4.82 for the quarter, surpassing analysts’ expectations of $4.02 by $0.80. The company recorded revenue of $23.47 billion, exceeding forecasts of $22.79 billion. This performance marked an annual revenue increase of 6.8% compared to the same quarter the previous year, when the company earned $4.05 in EPS.
FedEx has set its fiscal year 2026 guidance at an EPS range of $17.800 to $19.000. Analysts predict that FedEx will achieve an EPS of $19.14 for the current fiscal year, highlighting the company’s positive trajectory.
Institutional Investor Activity
Recent shifts in institutional trading further indicate growing confidence in FedEx. Vanguard Group Inc. increased its stake in the company by 13.2% during the third quarter, holding 23,442,049 shares valued at approximately $5.53 billion following the acquisition of an additional 2,741,723 shares.
Similarly, Dodge & Cox expanded its holdings by 12.0%, now owning 16,225,160 shares worth about $3.83 billion. Other notable increases include Geode Capital Management LLC, which raised its position by 0.6%, and Franklin Resources Inc., which increased its stake by 5.9%.
Valeo Financial Advisors LLC made headlines with a staggering increase of 28,080.9% in its position during the second quarter, now holding 3,743,557 shares valued at around $850.95 million. Currently, institutional investors and hedge funds own approximately 84.47% of FedEx’s stock, reflecting strong institutional confidence in the company’s future.
FedEx, headquartered in Memphis, Tennessee, has established itself as a leader in global logistics and courier services since its founding in 1971 by Frederick W. Smith. The company is known for its pioneering overnight express shipping and has since diversified its services to include a comprehensive range of transportation, e-commerce, and supply chain solutions.
As analysts remain optimistic about FedEx’s performance, the company appears well-positioned for continued growth in the competitive logistics market.
