We recently published a list of Jim Cramer Stock Portfolio for Q4: Top 11 Stocks to Buy and Sell. Since FedEx Corp (NYSE:FDX) ranks 5th on the list, it deserves a deeper look.
Jim Cramer in a latest program on CNBC talked about the importance of using short-term rallies to your advantage. He said that investors should know when to take the chips off the table.
“The idea that you should buy and hold through both the best of times and worst of times is probably incredibly foolish, with only very few exceptions,” Cramer said.
Cramer said that if the stock you bought is going higher and higher and you keep resisting the urge to take some profits, you won’t make any actual money from these gains if the stock comes down later paring all these profits. This seems straightforward but the idea of buying low and selling high is easier said than done, Cramer said.
“Don’t get carried away by the optimism. Instead, keep your head on straight, check your emotions, focus on long term and think about ringing the register, especially on stocks that might be getting too high,” Cramer added.
For this article we watched several latest programs of Jim Cramer aired on CNBC and picked 10 stocks he’s talking about. We also picked an interesting prediction Cramer made back in 2021 about a stock and saw how it turned out. With each company we have mentioned the number of hedge fund investors. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
FedEx Corp (NYSE:FDX)
Number of Hedge Fund Investors: 59
Talking about FedEx Corp (NYSE:FDX) latest results, Jim Cramer said it was not a “blowout” quarter despite CEO Raj Subramaniam doing a great job. Cramer said FedEx is facing headwinds amid macroeconomic problems and he’d be watching how the company performs after the recent rate cut.
Cramer said while FedEx Corp (NYSE:FDX) revenue did not “explode” the bottom line was “amazing.”
FedEx’s fiscal Q1 results were not impressive, partly due to tough comparisons year over year when the company had a 7.2% operating margin, the highest prior to Q4 2024’s 8.3% margin.
The first fiscal quarter, ending in August, is typically FedEx’s weakest of the year.
However, revenue expectations for fiscal 2025 have been reduced. The market initially expected 3% growth, but that’s now been cut to 1%. FedEx Corp (NYSE:FDX) hasn’t posted significant revenue growth for eight straight quarters. It would be interesting to see the company’s performance in the coming quarters to see if a decline in rate cuts helps the company’s fundamentals.
Longleaf Partners Fund stated the following regarding FedEx Corporation (NYSE:FDX) in its first quarter 2024 investor letter:
“FedEx Corporation (NYSE:FDX) – Global logistics company FedEx performed well for the period. The company beat consensus estimates in the quarter and showed material progress in its DRIVE cost reduction program that we have written about previously. FedEx also repurchased substantial stock in the quarter. Its 6% annualized repurchase pace is very strong compared to its history, and the company authorized another $5 billion share repurchase program. FedEx also lowered capital expenditures guidance for the fiscal year, further helping FCF generation. We believe the company is approximately halfway through its cost cutting program with more room to go that is still not appreciated by the market.”
Overall, FedEx Corp (NYSE:FDX) ranks 5th on Insider Monkey’s list titled Jim Cramer Stock Portfolio for Q4: Top 11 Stocks to Buy and Sell. While we acknowledge the potential of FedEx Corp (NYSE:FDX), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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.
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Disclosure: None. This article is originally published at Insider Monkey.
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