FedEx Corporation (FDX) Battles Lawsuit Over Overtime Allegation, While Citi Maintains Bullish Outlook

Trading at a low P/E multiple with potential upside for investors, FedEx Corporation (NYSE:FDX) is among the 14 Cheap Transportation Stocks to Buy According to Analysts.

FedEx Corporation (FDX) Battles Lawsuit Over Overtime Allegation, While Citi Maintains Bullish Outlook

On July 11, 2025, Bloomberg reported that FedEx Corporation (NYSE:FDX) is facing a new class action lawsuit filed in the U.S. District Court for the Northern District of Illinois. The lawsuit allegedly accuses the company of violating Illinois wage laws as it fails to pay overtime.

Meanwhile, on the previous day, Citi maintained a ‘Buy’ rating on FedEx Corporation (NYSE:FDX), setting its price target at $278, which is significantly higher than the company’s current price of $226.62, as of the time of writing. This comes ahead of the company’s announcement of the opening of a new 38,000-square-foot logistics facility in Manchester, U.K. This facility, located near Manchester Airport, boasts advanced sorting and security technologies, enhancing operational efficiency and service quality. The facility’s opening, announced by the company on July 16, 2025, underscores FDX’s ongoing international infrastructure investment to support trade and growth as it navigates legal challenges.

FedEx Corporation (NYSE:FDX) offers transportation, e-commerce, and business services globally with its FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. It is on the list of cheap transportation stocks.

While we acknowledge the potential of FDX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FDX and that has 100x upside potential, check out our report about this cheapest AI stock.

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