10 Best Logistics Stocks to Buy Now

3. FedEx Corporation (NYSE:FDX)

Number of Hedge Fund Holders: 56

Value of Hedge Fund Holdings: $2,095,581,000

FedEx Corporation (NYSE:FDX) is a multinational holding company headquartered in Memphis, Tennessee. The company specializes in transportation, e-commerce, and business services.

In the first quarter of 2024, FedEx Corporation (NYSE:FDX) reported earnings per share of $3.86, which was 10.95% higher than the estimates. Moreover, the net profit margin was 4.04%, marking a 16.09% year-over-year increase. The stock offers a forward dividend yield of 2.18%.

FedEx Corporation (NYSE:FDX) has received an average price target of $308.7 from analysts. This reflects an upside potential of over 20%. Furthermore, 8 analysts have rated the stock a “Strong Buy,” while 13 have given a “Buy” rating to FedEx Corporation (NYSE:FDX).

Here’s what Longleaf Partners said about FedEx Corporation (NYSE:FDX) in its Q1 2024 investor letter:

FedEx Corporation (NYSE:FDX) – Global logistics company FedEx performed well for the period. The company beat consensus estimates in the quarter and showed material progress in its DRIVE cost reduction program that we have written about previously. FedEx also repurchased substantial stock in the quarter. Its 6% annualized repurchase pace is very strong compared to its history, and the company authorized another $5 billion share repurchase program. FedEx also lowered capital expenditures guidance for the fiscal year, further helping FCF generation. We believe the company is approximately halfway through its cost cutting program with more room to go that is still not appreciated by the market.”

As of Q1 2024, 56 hedge funds reported owning a stake in FedEx Corporation (NYSE:FDX), making it one of the best logistics stocks to buy now.