"The big move in FDX off the lows earlier this year has been warranted ... as the world didn't come to an end, and FedEx has shown it is a winner from this odd pandemic period," he wrote in a commentary cited by MarketWatch.
FedEx shares recently traded at $243.85, up 1.01%. The stock has jumped 61% year to date, as the coronavirus pandemic has sparked an onslaught of package traffic. People stayed home and ordered online for delivery.
Morningstar analyst Matthew Young likes FedEx, too, though he says the shares are overvalued. He sees fair value at $193.
“Business-to-consumer volumes are surging, and FedEx's longer-term growth prospects haven’t evaporated,” he wrote in a commentary last week.
“Its extensive international shipping network is extraordinarily difficult and costly to duplicate, global trade will eventually improve, and domestic/international e-commerce tailwinds should remain favorable for years to come.”
“FedEx continues to bolster its ground and express capabilities and is well positioned as a key provider for the myriad other retail shippers pursuing e-commerce, not to mention its entrenched relationships in domestic and international business-to-business delivery,” he said.
“The TNT integration made headway in the firm's fiscal 2020, and we expect efforts to gradually bear fruit in Europe as FedEx fully integrates all of its ground and express assets there.”