FedEx Corporation (NYSE:FDX) is one of the stocks Jim Cramer offered insights on. Cramer made some positive comments on the stock following its earnings. He said:
“… Subramaniam said that because they’d already handled this with China, they were in a much better position to help shippers in the rest of the world now that the exemption’s totally gone. It seems like they’ve worked some great partnerships about this stuff. At the same time, FedEx is clearly winning market share, and they’re not doing it simply by cutting prices. I think they’re doing it with better service…
Put it all together and you get what we got last night, a much better-than-expected set of numbers from FedEx that led to a very nice rally in the stock. And I’ve gotta tell you, I thought it should have even been higher. So the question is, can it continue? Honestly, I think it really can. While I want to stay a little cautious, given everything that’s going on with tariffs and a murky economic backdrop, I think FedEx has been able to do a fantastic job navigating its way through this tricky environment, keeping customers happy and taking a lot of market share while also cutting costs.
That makes me feel a lot more confident about this one. Doesn’t hurt that stock’s super cheap, trading at less than 13 times the midpoint of their full-year earnings forecast. Remember, average stock in this market sells at 25 times earnings. And when all is said and done, I wonder if that forecast ends up looking super conservative in retrospect. FedEx also pays a respectable 2.5% dividend yield, and unlike UPS… [whose] yield is more than three times that level, I have no worries that FedEx is going to have to cut it. This dividend is safe. The bottom line: Even in a tough environment, FedEx managed to blow away the numbers last night, and look at how they pulled it off. I gotta tell you, I am cautiously optimistic that this one is not done and is going higher, maybe much higher.”
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FedEx Corporation (NYSE:FDX) provides transportation, logistics, e-commerce, and business services, including express shipping, freight, ground delivery, and supply chain management solutions.
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Disclosure: None. This article is originally published at Insider Monkey.
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