FedEx stock drops 18% from 52-week high, but potential upside with cost reduction program

From Nasdaq: 2024-09-23 09:52:00

Shares of FedEx (NYSE: FDX) have dropped 18% to 81% of their 52-week high, officially entering a bear market. Concerns arise as the transportation giant’s weakness stems from business shipping volumes, impacting consumer discretionary sector sentiment.

FedEx’s recent earnings results offer insights into the transportation sector’s economic indicators, attracting market interest. Despite a 37.5% potential upside to $350 per share, analysts foresee a 26.6% growth in EPS from $3.6 to $4.56 next year.

Management’s $1 billion stock buyback signals optimism for FedEx’s future. With a 24% EPS contraction but improved free cash flow, the DRIVE program aims to bring cost reductions of up to $2.2 billion, providing hope for investors looking ahead.



Read more at Nasdaq:: FedEx Stock Slowdown Signals Potential Dip Opportunity