FedEx stock to rise after announcing spin-off of freight business

From Nasdaq: 2024-12-22 21:49:28

FedEx stock (NYSE: FDX) is set to rise after announcing the spin-off of its freight business, valued at over $30 billion. This move will help focus on the core delivery business and improve profitability. FDX stock has seen gains of 66% since 2023, despite a decline in adjusted earnings and revenue.

The spin-off could lead to higher valuation multiples for FDX stock, which currently trades at 17x trailing adjusted earnings. While FDX stock looks fairly priced at around $285 per share, the spin-off development could push the stock to higher levels. The Trefis High-Quality Portfolio has outperformed the S&P 500 consistently.

Comparing returns, FDX stock has seen a 10% year-to-date return in 2024, with a total return of 51% from 2017-2024. The S&P 500, in comparison, has a 23% year-to-date return in 2024 and a total return of 162% from 2017-2024. The Trefis Reinforced Value Portfolio has a total return of 749% from 2017-2024.

In a volatile market environment, FDX stock is expected to benefit from the spin-off and may reach higher levels. Peer comparisons can provide valuable insights into how FDX stock fares against its competitors. Consider investing with Trefis Market-Beating Portfolios for potential market outperformance.



Read more at Nasdaq: What’s Happening With FedEx Stock?