3. FedEx Corporation (NYSE:FDX)
FedEx Corporation (NYSE:FDX) is one of the stocks highlighted in Jim Cramer’s latest Mad Money recap as he provided top stock insights. Cramer highlighted that he expects more upside from the stock as he commented:
All things considered, this was an excellent quarter for FedEx, and the stock absolutely deserved its gains today… Even though FedEx has rallied like crazy over the last six months or so, I don’t think the stock’s run is necessarily near its end. And why do I say that? Well, the stock currently trades just over 18 times the midpoint of the company’s newly raised full-year forecast, which is on the high end of where this one tends to trade historically. But I think it’s fair to expect that the earnings are going to go up big next year. And keep in mind, next fiscal year, they won’t have the freight business, which is currently the worst-performing part of the company.
Looking at the estimate for fiscal 2027, FedEx currently trades at just 16 times that number, and keep in mind, those estimates may prove to be too low given that these guys keep beating the numbers. Using the longer-term targets from last month’s investor meeting, Wall Street expects more than $28 in earnings per share in 2029. So, FedEx is trading at only 13 times their 2029 earnings forecast. 13 times, that’s crazy.
Now, does this excellent quarter from FedEx have implications for the broader transport sector? I think that’s hard to say… It’s not the kind of place you should be in this kind of environment, but FedEx did have positive commentary about its own volumes, seeing strength across nearly all their package services. But it’s honestly tough to figure out how much of that is from a broader recovery in package volumes and how much of that is FedEx taking market share because they’re running circles around the competition…
Let me give you the bottom line on this incredibly exciting turnaround: After a harsh sell-off in the transports in response to the war with Iran cutting off oil supplies in the Persian Gulf, it was nice to see FedEx report a really terrific quarter and then rally… This company’s doing incredibly well, and I think the stock deserves to go higher, maybe appreciably higher. Of course, the longer the Strait of Hormuz stays closed, the harder it gets to own any of the transports, including FedEx. But if any of these companies is going to escape the situation unscathed, I think it’ll be this one.
FedEx Corporation (NYSE:FDX) provides transportation, shipping, and logistics services, e-commerce solutions, and supply chain management.
