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Memphis, Tennessee-based FedEx Corporation (FDX) offers transportation, e-commerce, and business services. Valued at $64.4 billion by market cap, the company provides logistics and transportation services, including express and small-package ground delivery, freight shipping, less-than-truckload transportation, supply chain management, air and ocean freight forwarding, cargo transportation, specialty shipping, customs brokerage, third-party logistics and more.
Shares of this global shipping giant have underperformed the broader market over the past year. FDX has gained 12.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.5%. In 2025, FDX stock is down 4.9%, compared to SPX’s 4.2% rise on a YTD basis.
Narrowing the focus, FDX’s outperformance is apparent compared to Pacer Industrials and Logistics ETF (SHPP). The exchange-traded fund has gained about 3% over the past year. However, the ETF’s 6% gains on a YTD basis outshine the stock’s losses over the same time frame.
FDX's underperformance is driven by weaker-than-expected revenues, driven by prolonged weakness in U.S. industrial production, which has weighed on less-than-truckload industry demand. Additionally, the company has also faced challenges from post-COVID volume and pricing normalization, weaker U.S. domestic demand, and the expiration of its U.S. Postal Service contract.
On Dec. 19, FDX shares closed up by 1% after reporting its Q2 results. Its adjusted EPS of $4.05 surpassed Wall Street expectations of $3.90. The company’s revenue was $21.97 billion, missing Wall Street forecasts of $22.04 billion. FDX expects its full-year adjusted EPS to be between $19 and $20.
For the current fiscal year, ending in May, analysts expect FDX’s EPS to grow 7.5% to $19.14 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
Among the 27 analysts covering FDX stock, the consensus is a “Moderate Buy.” That’s based on 16 “Strong Buy” ratings, one “Moderate Buy,” nine “Holds,” and one “Strong Sell.”
This configuration is less bearish than a month ago, with two analysts suggesting a “Strong Sell.”
On Feb. 3, Loop Capital gave a “Hold” rating on FDX with a price target of $283, implying a potential upside of 5.8% from current levels.
The mean price target of $320.22 represents a 19.7% premium to FDX’s current price levels. The Street-high price target of $372 suggests an ambitious upside potential of 39.1%.
