NEW YORK, January 24, 2013 /PRNewswire/ -- Despite earning only $1.39 per diluted share for the second quarter of 2012, analysts are still confident that FedEx Corporation (NYSE: FDX) [ Full Research Report]  is an ideal company to invest in. FedEx's second quarter 2012 earnings missed the consensus estimate by $0.02 and its earnings are also lower compared to the $1.57 per share earned by the company in the same quarter of 2011. FedEx states that super storm Sandy had affected the quarterly results by $0.11 per diluted share due to reduced shipment volumes and incremental shipping costs. Without the losses caused by the untimely weather disruption, FedEx's actual profit is computed to be at $1.50, beating the analysts' estimate of $1.41. Jyske Bank's Senior Equity Analyst Robert Jakobsen also upheld a buy rating on FedEx with a 12-month target price of $115. He believes that the company's shares are considered undervalued at current levels because FedEx still has a strong foundation, a skilled management team, and a well-regarded brand. "It remains in our view that FedEx will win market share in all divisions," the analyst says. The company has also put into effect its profit improvement program, which targets a $1.7 billion increase in annual profit by the end of 2016. The company anticipates to increase its dividends in the years to come through a combination of cost reductions, efficiency improvements and service repositioning. According to Frederick W. Smith, FedEx chairman, president and CEO, "Our overall strategy is closely tied to effective yield management. The key is striking the right balance between volume growth and yield improvements." Furthermore, FedEx management is proving to be more prudent when it comes to making long-term business decisions. After the deal between United Parcel Services (NYSE: UPS) and TNT Express fell through last week, many have assumed that FedEx will take over the deal and place a bid at TNT. However, FedEx is passing on making any offers to see if the stock price for TNT will rise again after dropping to 0.41% or $6.47. Furthermore, FedEx management may be hesitant to pursue the deal due to the possibility of meeting the same fate that UPS met in attempting to acquire TNT. With positive growth, a strong balance sheet and consistent cash flow, analysts are confident that FedEx will deliver a strong performance for the coming year. As the business continues to expand, and strong margins show that the company is turning revenue into profit. For FedEx to improve, the company must work on boosting growth and getting its dividend up to par with the yields that UPS pays out. However it must be noted, that FedEx has a 3-year projected earnings growth rate of 12.5%, ahead of UPS, with a 3-year average growth rate of 11.1%. FedEx is the cheaper option and has a greater growth potential.