Story updated at 9:55 a.m. to reflect market activity.
Shares of FedEx were gaining 0.1% to $182.19.
Analysts Brandon R. Oglenski and Keith Mori expect lower fuel prices to "drive 30-40c of EPS upside over the course of 2Q and 3Q FY15 results." The analysts raised their fiscal second quarter EPS for the delivery company to $2.40 a share, saying that "the fuel surcharge lag should be worth close to 20c during the quarter."
The analysts continued, "Stronger environment could support price gains for FedEx - E-commerce growth is a challenge for both FedEx and UPS, with lower yields driving mix erosion. However, we see FedEx incrementally taking price in the Ground segment, relative to faster volume expansion at competitor UPS. Strong holiday results could support continued price and margin gains for FedEx."
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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."