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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV