10 Worst Blue Chip Stocks to Buy

7. FedEx Corporation (NYSE:FDX)

Number of Hedge Fund Holders: 66

% Decline on a YTD Basis: ~20.5%

FedEx Corporation (NYSE:FDX) offers transportation, e-commerce, and business services in the US and internationally. Analyst Ken Hoexter of Bank of America Securities reiterated a “Buy” rating on the company’s stock with a price objective of $272.00. The analyst’s rating is backed by a combination of factors demonstrating FedEx Corporation (NYSE:FDX)’s efforts in cost savings and operational efficiencies. The analyst highlighted that despite worries related to the macroeconomic uncertainties and inflationary pressures, it made strong progress in its DRIVE cost savings initiatives, achieving $600 million in savings in Q3 2025.

Furthermore, FedEx Corporation (NYSE:FDX) continues to advance its Network 2.0 transformation and Tricolor initiatives, which can further improve operational efficiencies. Despite the weak industrial economy impacting the company’s business-to-business volumes, its strategic initiatives are regarded as a favourable catalyst for future growth, added Hoexter. FedEx Corporation (NYSE:FDX) continues to make healthy progress on decreasing its cost to serve and improving operational performance, mainly at Federal Express, aiding operating income and earnings growth.

Longleaf Partners, managed by Southeastern Asset Management, released its Q1 2025 investor letter. Here is what the fund said:

“FedEx Corporation (NYSE:FDX) – Global logistics company FedEx was a detractor for the quarter. The company faced macro headwinds, including tariff threats and ongoing demand weakness in the US. The company is growing market share and margins in its formerly challenged European business, and this was a driver for the Express business to report low-single-digit topline growth that turned into double-digit cash flow growth. The Freight business saw a decline like its peers who are also wrestling with weak industrial conditions. FedEx remains on track to separate into two entities: Express and Freight. This split should provide both companies with greater financial flexibility and accountability, allowing them to be run more efficiently. The market has consistently undervalued FedEx’s Freight operations, and a large discount to UPS is no longer warranted for the Express business. Tariff headwinds will be challenging to navigate, but we are glad the company is more on offense now than it has been in previous downturns.”