We recently published a list of 12 Most Oversold Large Cap Stocks to Invest in Now. In this article, we are going to take a look at where FedEx Corporation (NYSE:FDX) stands against other most oversold large cap stocks to invest in now.
Impact of Tariff Uncertainty on Wall Street and the Future of US Stocks
Wall Street is being impacted by the uncertainty surrounding the tariff news. The broader has dropped a lot since Trump took office on January 20, and investors are mostly worried about tariffs because they think they could hurt economic growth and cause inflation. Investors think trade policies can reduce consumer confidence and restrict businesses’ ability to invest capital, while Trump believes tariffs can boost national revenue, promote broad-based growth, and be used as a negotiation weapon with other nations.
According to Franklin Templeton, the Magnificent Seven’s supremacy in AI has allowed US stocks to generate significant returns over the last few years, with the broader market frequently hitting all-time highs. The outlook for the market as a whole is favorable, notwithstanding high valuations. Sales growth has been accelerating, innovation and investment are still happening at a rapid pace, and this year’s earnings are predicted to increase by double digits. Additionally, the administration of the US economy is more business-friendly. However, there are concerns, primarily associated with US trade policy and the anticipated effects of tariffs on important industries, such as technology.
Franklin Templeton thinks that despite these risks, investor confidence in US stocks should continue to be high. The new administration’s policy reforms are anticipated to finally produce long-term benefits for the larger US economy, notwithstanding the possibility of increased dangers.
Franklin Templeton also stated that although the Mag 7 stocks are positioned for long-term success, market leadership is anticipated to expand as and when innovation accelerates. According to the investment firm, active management is crucial. The transition from AI platforms to infrastructure is still in progress. Consequently, it is anticipated that the success of investments will depend on the ability to select the appropriate companies at the right time—those that have the technology, strategy, and flexibility to continue and sustain long-term growth.
Thanks to innovation and investment, US stocks—mostly large-cap stocks—have been doing well. Notably, the Dow index has increased by more than 4.5% in the last six months. The investment business sees expanding chances beyond such market leaders, even though the Mag 7 stocks still sustain the market momentum. The competitive landscape is still dynamic and has been generating new development sectors as a result of the ongoing AI-driven cycle.
Our Methodology
For our methodology, we screened for stocks with a market capitalization exceeding $10 billion and a relative strength index (RSI) below 40. We then ranked these stocks based on the lowest RSI as of March 23, 2025. An RSI below 40 suggests that the stock is oversold.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A driver unloading packages from a van for a time-critical delivery.
FedEx Corporation (NYSE:FDX)
Relative Strength Index: 29.22
FedEx Corporation (NYSE:FDX) is a global logistics leader specializing in package and freight delivery. The company operates the world’s largest cargo airline with 697 aircraft, an extensive ground network with over 600 facilities and 40 hubs, and it invests heavily in technology for automation and tracking.
FedEx Corporation (NYSE:FDX)’s third-quarter fiscal 2025 results showed mixed performance, with revenue rising 2% year-over-year to $22.2 billion, surpassing expectations. Its adjusted operating income grew by 12%, which was driven by cost reductions under the DRIVE program, while adjusted EPS increased by 17% to $4.51 but fell short of Wall Street estimates of $4.59. The company also achieved $600 million in quarterly cost savings and lowered capital expenditures to $997 million, revising its full-year forecast to $4.9 billion from $5.2 billion. Additionally, the business continued its shareholder returns, completing $500 million in share repurchases, bringing the year-to-date total to $2.5 billion.
Despite these improvements, FedEx Corporation (NYSE:FDX) faces several challenges. The company also lowered its FY25 adjusted EPS guidance to $18-$18.60, which was down from the previous $19-$20 range, citing inflationary pressures and weaker industrial demand. The corporation’s Freight revenue declined by 5% due to lower volumes and reduced fuel surcharges, while the expiration of its U.S. Postal Service contract led to a significant drop in domestic express freight volumes. These headwinds, along with its inclusion among the most oversold stocks, underscore the company’s ongoing struggle to balance cost efficiencies with external economic pressures.
Overall, FDX ranks 12th on our list of most oversold large cap stocks to invest in now. While we acknowledge the potential of FDX, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FDX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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