FedEx Corporation (NYSE:FDX) is one of the stocks Jim Cramer expressed his thoughts on. Inquiring about the stock, a caller called the stock “undervalued” and noted an increase of 60 points since April. In response, Cramer said:
“You want to buy this stock. I’m going to cut you short here because this is so easy… This is one of my favorite stocks. I wish we owned it for the Charitable Trust… The stock is going, I think, all the way back over $300. It’s having a good quarter. And I mean, can I just say that Raj Subramaniam turns out to be just one dynamite exec who I know is making Fred Smith proud. We miss Fred very much.”
Fedex-Ground-FDX-obi-onyeador-8LCZb66I4wg-unsplash.jpg
FedEx Corporation (NYSE:FDX) provides transportation, e-commerce, and logistics services, including express and freight shipping, ground delivery, and supply chain management. During the September 19 episode, Cramer showed optimism toward the stock, as he remarked:
“… 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.”
While we acknowledge the risk and potential of FDX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FDX and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center