Memphis, Tennessee-based FedEx Corporation (FDX) provides transportation, e-commerce, and business services. Valued at $52.7 billion by market cap, the company provides worldwide express and freight delivery, ground small-parcels, less-than-truckload, supply chain management, customs brokerage services, trade facilitation, and electronic commerce solutions.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and FDX fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the integrated freight and logistics industry. FedEx has distinguished itself as a top player in the global logistics industry through savvy marketing and technology investments. With cutting-edge services such as FedEx Surround Select and SenseAware ID, the company continues to exceed customer expectations and outshine its rivals. Their embrace of cloud-based systems demonstrates a dedication to staying ahead of the curve and ensuring maximum operational efficiency in a rapidly evolving logistics environment.

Despite its notable strength, FDX slipped 30.3% from its 52-week high of $313.84, achieved on Jul. 16, 2024. Over the past three months, FDX stock dipped 11.7%, underperforming the Pacer Industrials and Logistics ETF’s (SHPP) 4.5% gains during the same time frame. 

In the longer term, shares of FDX dipped 22.2% on a YTD basis and fell 11% over the past 52 weeks, underperforming SHPP’s YTD gains of 5% and 4.1% returns over the last year. 

To confirm the bearish trend, FDX is trading below its 50-day moving average since mid-December, 2024, with minor fluctuations. The stock has been trading below its 200-day moving average since late January. 

FDX's performance has been challenged by factors such as geopolitical uncertainty, tariffs, and higher inflation affecting consumer confidence and growth prospects. The company is facing pressure on its revenue due to subdued demand, concerns surrounding upcoming union negotiations, and a decline in package volumes. Management attributes the weak performance to a sluggish industrial economy and customers choosing more cost-effective services.

On Mar. 20, FDX reported its Q3 results, and its shares closed down by 6.5% in the following trading session. Its adjusted EPS of $4.51 did not meet Wall Street expectations of $4.65. The company’s revenue was $22.2 billion, topping Wall Street forecasts of $21.9 billion. FDX expects full-year adjusted EPS in the range of $18 to $18.60.

FDX’s rival, United Parcel Service, Inc. (UPS) shares lagged behind the stock, plummeting 27.3% over the past 52 weeks, but outpaced the stock with a 21.9% loss on a YTD basis. 

Wall Street analysts are moderately bullish on FDX’s prospects. The stock has a consensus “Moderate Buy” rating from the 30 analysts covering it, and the mean price target of $281.07 suggests a potential upside of 28.4% from current price levels.