3. FedEx Corporation (NYSE: FDX)
Gates’ Stake Value: $424,274,000
Percent of Bill & Melinda Gates’ 13F Portfolio: 2.02%
Number of Hedge Fund Holders: 63
Ranking 3rd in our list of 10 best stocks to buy now according to Bill Gates is FedEx Corporation (NYSE:FDX). The multinational distribution firm was founded in 1971 and offers various delivery services such as FedEx Ground, FedEx Home Delivery, FedEx Priority Overnight, and FedEx Standard Overnight. In 2020, the company acquired the e-commerce shopping platform ShopRunner. The acquisition added value to brands, merchants, and customers by complementing and expanding FedEx Corporation’s e-commerce portfolio.
FedEx Corporation (NYSE:FDX) posted its revenue of $19.3 billion in the first quarter of 2021, up from $17.0 billion in the first quarter of 2020. FDX shares currently trade for $303.34 and have a P/E of 26.71. The current dividend yield is 0.86%. The 52-week price range of FedEx Corporation (NYSE:FDX) is $127.29-319.90. Shares of FDX jumped 103% over the last twelve months. On June 4, Raymond James maintained an Outperform rating on FedEx Corporation and raised the price target to $330.
The Bill & Melinda Gates Foundation holds 1,493,712 shares in the company worth over $424 million. This represents 2.02% of their portfolio.
There were 63 hedge funds that reported owning stakes in FedEx Corporation (NYSE:FDX) at the end of the first quarter. The total value of these stakes at the end of Q1 is $2.26 billion.
Artisan Partners mentioned FedEx Corporation (NYSE:FDX) in its Q1 2021 investor letter. Here is what the fund said:
“Whatever products did make it off the line met a constrained logistics infrastructure, with commercial air capacity cut and ship cargo space at a premium. Then, in the event your dishwasher part actually made it to US waters, our ports were congested due to manpower shortages and COVID-19 protocols. When the goods were finally unloaded, it turns out trucking shortages caused a spike in ground rates! All this might be bad for your dinner parties, home décor or exercise goals, but it can be great for the middlemen. Middlemen like logistics expert FedEx.
FedEx provides global logistics services. It gets your dishwasher part on a truck, or that semiconductor chip on a plane. Surging demand for at-home deliveries during the pandemic boosted volumes and allowed management to push through price increases, keeping competitive with industry peers. The industry’s renewed pricing discipline was a welcome change, reflecting a broader commitment to earn better returns on invested capital. Despite a significant re-rating of the business over the last 12 months, FedEx remains attractive based on our margin of safety criteria.”
