How Will FedEx (FDX) Stock Be Affected Today By New DOJ Charges?

NEW YORK (TheStreet) -- FedEx Corp.  (FDX) faces new charges from the Justice Department which on late Friday filed additional charges accusing it of conspiracy to launder money, in connection with its prescription drug case against the package delivery concern, the Wall Street Journal reports.

The latest charges, in a new indictment filed in San Francisco district court, allege that FedEx knew payments from certain pharmacies resulted from invalid prescriptions. It also alleges the company collected payments on some of the prescriptions to return to the issuer, the Journal said.

The original indictment in the case was filed in July.


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Shares of FedEx closed lower to $148.72 on Friday.

TheStreet Ratings team rates FEDEX CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate FEDEX CORP (FDX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

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