FedEx Corporation Stock Buy Recommendation Reiterated (FDX)
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- Despite its growing revenue, the company underperformed as compared with the industry average of 4.8%. Since the same quarter one year prior, revenues slightly increased by 3.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Although FDX's debt-to-equity ratio of 0.14 is very low, it is currently higher than that of the industry average. To add to this, FDX has a quick ratio of 1.63, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has increased to $1,258.00 million or 48.17% when compared to the same quarter last year. In addition, FEDEX CORP has also vastly surpassed the industry average cash flow growth rate of -72.59%.
- In its most recent trading session, FDX has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
--Written by a member of TheStreet Ratings Staff. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
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