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UBS Lowers FedEx (FDX) Price Target but Keeps Buy Rating

FedEx Corporation (NYSE:FDX) is one of the 12 Best Logistics Stocks to Buy According to Hedge Funds. On June 25, UBS reduced its price target for FedEx Corporation (NYSE:FDX) from $311 to $297 while keeping a “Buy” rating.

This decision came after the company shared results for its fourth quarter of fiscal 2025. FedEx Corporation (NYSE:FDX) reported adjusted earnings per share of $6.07 for the quarter, which beat market expectations.

A driver unloading packages from a van for a time-critical delivery.

The company’s operating income in both its Federal Express and Freight segments came in stronger than expected. This was excluding a $33 million gain on the sale of a facility, which added $0.09 per share to the Freight division’s earnings before interest and taxes.

For the first quarter of fiscal 2026, FedEx Corporation (NYSE:FDX) provided guidance with a midpoint of $3.70 per share. This is about 9% below consensus estimates. The company also decided not to provide guidance for the full year, citing uncertainty in the global economy and trade.

UBS analysts noted that FedEx Corporation’s (NYSE:FDX) stock is likely to see a “modestly negative response” to the earnings report and guidance, especially because of the company’s cautious stance and its choice not to provide a more complete outlook for its fiscal year 2026.

FedEx Corporation (NYSE:FDX) is an American company that specializes in transportation, e-commerce, and logistics. The company serves over 220 countries and territories.

While we acknowledge the potential of FDX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FDX and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Best American Semiconductor Stocks to Buy Now and 11 Best Fintech Stocks to Buy Right Now.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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