To The Moon

Earnings Calendar (15Sep25)

There are a few interesting earnings in the coming week that include FactSet, FedEx and Lennar.

Let us look at FedEx, as Logistics is a good reference for the market.

Looking at how busy a company like FedEx is can give you an early hint about where the economy is heading. If they report that their shipping volume is up, it's a good sign. If it's down, it could be an early warning of a potential economic slowdown. This makes them a great "leading indicator" for the stock market and the economy.

Stock Performance & Analyst Consensus

FedEx's stock has experienced a decline, falling 18% over the past year. Technical analysis suggests a neutral rating for the stock. However, a majority of analyst sentiment remains bullish, with a consensus "Buy" rating. The average price target is set at $263.04, representing a potential upside of 14.59% from the current price.

Financial Highlights (2016-2025)

The company has demonstrated long-term growth in its top-line performance.

• Revenue: Grew from $50.3 billion in 2016 to $87.9 billion in 2025. The company's highest revenue year was 2022, reaching $93.5 billion.

• Operating Profit: Increased from $3 billion in 2016 to $5.9 billion in 2025. The most profitable year on record was 2022, with an operating profit of $6.5 billion.

• Earnings Per Share (EPS): The EPS rose from $6.51 in 2016 to $16.81 in 2025. The company's peak EPS was $19.45 in 2021.

• Valuation & Margins: The company's Price-to-Earnings (P/E) ratio is 13.2, which is considered attractive. FedEx has also maintained a gross profit margin of 21.5% and a 10-year median free cash flow margin of 2.4%.

Recent news about FedEx

FedEx is undergoing a significant business transformation, focusing on cost-cutting and efficiency to enhance its profitability. The company has recently achieved its fiscal 2025 cost-reduction targets through its "DRIVE" program, which is a key part of its strategy to navigate a challenging economic environment.

To enhance its operations, FedEx acquired RouteSmart Technologies to improve route optimisation and efficiency. A major development is also the company's renewed partnership with Amazon to handle some of its large-package deliveries, a notable change from their previous separation. Looking ahead, FedEx faces continued economic headwinds and strong competition, but its strategic initiatives are aimed at positioning the company for long-term growth and stability.

For the coming earnings, the forecasts are $3.68 for EPS and $21.69 billion for revenue. While this is attractive, there is concern about a global slowdown. The outlook of FedEx can be a good barometer for the global market.

Here is a comparison of the P/E ratios for FedEx and its primary competitors:

Competitors’ P/E Ratio (Supply Chain)

• FedEx (FDX) 13.2

• United Parcel Service (UPS) 12.5

• DHL Group (DHLGY) 13.2

FedEx can be a good consideration for our portfolio, referencing its P/E ratio.

@TigerStars

$FedEx(FDX)$

$FactSet Research(FDS)$