"We are adding FedEx to our US1 List. The shares are a top pick as we enter 2015," analysts said.
"We believe the company will capitalize on its profit improvement plan, that it benefits from declining fuel prices through rising demand and a lag benefit in its fuel surcharge in F2Q15, and that e-commerce volumes will drive demand for its services," analysts added.
Additionally, FedEx Express overnight shipments posted 3.8% growth in F2Q15, its highest growth rate in eight years, indicating the ongoing fuel pullback could show some rebound in its core Express operations, analysts noted.
Shares of FedEx are up 0.73% to $179 in pre-market trading.
Separately, 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins."