Jim Cramer Highlights FedEx Pressure from Loss of Chinese Tariff Exemption

FedEx Corporation (NYSE:FDX) is one of the stocks on Jim Cramer’s radar. The company was part of Cramer’s game plan, and he said:

“After the close, FedEx reports and the analysts have been lowering numbers and lowering numbers because of an expected decline in Chinese packages, now that they no longer have that tariff exemption.”

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FedEx Corporation (NYSE:FDX) provides a range of services in transportation, e-commerce solutions, and business support. The company’s services include express shipping, small-package deliveries, freight services, and additional business-related services. It is worth noting that on June 25, Cramer said:

“Third loser, freight transportation. Truckers can’t seem to make their numbers. The railroad stocks can’t get any momentum. FedEx showed you how hard this business is when they reported last night. Their business-to-business service has been stuck in neutral, even as the business-to-consumer side is okay, but FedEx hasn’t been able to make the Street’s numbers.

I think we’ve got some opportunity here, though. FedEx has cut its capital expenditures and chopped its expenses. It’s a coiled spring. I like coiled springs, but understand that it won’t spring until we see how the tariffs shake out, because so much of the business involves import-export. Until then, spring stays coiled.”

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