
FedEx (FDX) Stock Forecast & Price Target
FedEx (FDX) Analyst Ratings
Bulls say
FedEx's diverse revenue composition, with 47% from its express division and 37% from ground services, underscores its robust market position as the largest express package provider globally. The company's positive yield metrics, including a composite revenue per hundredweight (rev/cwt) increase of 5.2% year-over-year, reflect successful strategies in revenue quality maintenance and effective pricing amid a rational competitive environment. Additionally, the successful integration of TNT Express has accelerated synergies, further enhancing FedEx's operational efficiencies and supporting anticipated revenue growth in fiscal year 2025.
Bears say
FedEx experienced a significant decline in financial performance during fiscal year 2024, with adjusted express revenue decreasing by 0.7% year-over-year and adjusted earnings before interest and taxes (EBIT) of $1.0 billion, reflecting only a modest increase of 1.2% year-over-year. The company's disappointing adjusted earnings per share of $3.60 fell nearly 25% below consensus expectations, prompting FedEx to revise its fiscal year 2025 guidance to a low-single-digit revenue growth outlook. Additionally, a detrimental mix shift towards deferred services constrained yield growth to a mere 1% year-over-year, which is approximately half of the prior management's expectations and indicative of a broader struggle with volume leverage as daily and total tonnage declined significantly.
This aggregate rating is based on analysts' research of FedEx and is not a guaranteed prediction by Public.com or investment advice.
FedEx (FDX) Analyst Forecast & Price Prediction
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