11 Best Logistics Stocks to Invest in Right Now

2. FedEx Corporation (NYSE:FDX)

Number of Hedge Funds: 55

FedEx Corporation (NYSE:FDX) offers a broad portfolio of transportation, e-commerce, and business services to customers and businesses worldwide. The firm is quite known for FedEx Express which pioneered overnight delivery as its flagship service. FDX has expanded its operations over the years and now operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments.

FedEx Corporation has an unrivaled global network linking more than 99% of the world’s GDP. This network spans over 220 countries and territories, including every address in the US, over 5,000 operating facilities, 705 aircraft, and over 200,000 motorized vehicles. The firm successfully delivers more than 17 million shipments per day.

The firm’s independent operating companies boast special strengths and capabilities making FDX a powerhouse that enables businesses to connect to each other, their customers, and the world. In this regard, a recent strategic move from the firm was its announced intent to separate FedEx Freight into an independent and a new publicly listed less-than-truckload industry company. The separation is expected to be executed within the next 18 months and will result in the two industry-leading public companies, FedEx and FedEx Freight, benefiting from distinct and compelling investment profiles.

Analysts reiterated the spin-off plan to fortify the firm’s core business. With the expected timeline of 18 months, some analysts think FedEx will be able to cut risks and separate the business when freight demand is favorable, as reported by Reuters. The separation is expected to enable FedEx to improve its focus on catering to the impact of soft industrial shipping demand and a shift away from higher-priced deliveries among customers. Regarding the spin-off, BMO Capital Markets analyst Fadi Chamoun stated:

“The decision to proceed with a full separation of the LTL segment has the potential to unlock significant value and is a welcomed holiday gift to FDX shareholders”