FedEx (FDX) CEO is Playing Offense, Says Jim Cramer

We recently published 10 Stocks on Jim Cramer’s Radar.  FedEx Corporation (NYSE:FDX) is one of the stocks on Jim Cramer’s radar.

FedEx Corporation (NYSE:FDX) is another key US firm in the middle of a turnaround. As is with the turnarounds of Nike and Starbucks, Cramer is also a believer in the firm. FedEx Corporation (NYSE:FDX) recently posted its earnings report for the fiscal second quarter on December 18th. The results saw the firm’s $23.5 billion in revenue and $4.82 in earnings per share beat analyst estimates of $22.8 billion and $4.12. FedEx Corporation (NYSE:FDX)’s earnings meant that Cramer, who had predicted ahead of the results that they would be a “blowout,” was proven correct. After the earnings, BMO Capital raised the share price target to $290 from $265 and kept a Market Perform rating. Since Cramer’s comments on December 19th, shared below, FedEx Corporation (NYSE:FDX)’s shares are 2.2% higher:

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“Again, people don’t know what they’re selling. This was a quarter, I was interviewing Raj, Raj Subramanian the CEO. . .and I know Raj is a hitter. So Raj comes out and he goes, look, one of the things that did well was business-to-business. I scrapped the whole interview and pivoted to business-to-business because I’ve been waiting for that. That’s where the money is. Healthcare, the healthcare vertical, they owned that. They are doing amazing things to get parts to data centers, that’s only nine billion, healthcare could be 40 billion. They are having a, they had a very good Black Friday, then they trailed off but it’s come back. The people who are selling this stock, are betting against a guy, who is literally taking so many costs out. He’s splitting off the freight, which is bad. What are you selling it for?. . .what do you want to go into?

“. . .business-to-business is really sticky, business-to-consumer is fickle. There he went with business-to-business, if Raj is making that turn, it’s amazing. . .but I do think that what’s happening at FedEx, is he is not only gotten so far as to be able to fix a lot of the costs which is what he’s working on, but now he’s playing offense with business-to-business, and people don’t understand, B2B versus B2C. B2B is where the money is. . . .you want to be B2B. . .”

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Disclosure: None. This article is originally published at Insider Monkey.