This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

7 Companies to Post Big Profit Gains

Stocks in this article: UPSFDXSSWCSXNSCLSTRJBHT

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

FedEx (FDX), the second-largest package-delivery company, is the world's biggest express-delivery firm, and derives two-thirds of its revenue from its express division.

The company said two weeks ago that it carried record domestic and international volume in the fiscal third quarter ended Feb. 28, and that its loss-making domestic truck unit would return to profit by June. For its fiscal fourth quarter, traditionally the company's strongest, FedEx predicted earnings of $1.66 to $1.83 per share, topping analysts' consensus forecasts of $1.65 per share.

Improving volumes are allowing FedEx to charge higher rates to new customers and raise rates as contracts with current customers come up for renewal, FedEx said.

According to TheStreet's survey of analysts, they give FedEx 17 "strong buy" ratings, three "moderate buys" and four "holds."

Standard & Poor's gives the shares a "buy" recommendation and the company a top five-star rating. It put a 12-month $113 price target on its shares now trading at $90.28.

S&P said in its review of the company that "we think that an improving U.S. and global economy is likely to lead to increased volumes across FedEx's entire network, and improved capacity utilization should drive margin expansion in fiscal 2011 and fiscal 2012. We believe the shares will benefit from increased investor interest in logistics stocks on concrete signs of economic improvement."

Its shares are up only 0.1% this year and 2.4% over the past year, giving the company a market value of $28 billion.

>>To see these stocks in action, visit the 7 Companies to Post Big Profit Gains portfolio on Stockpickr.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
8 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs