7 Best Delivery Stocks To Invest In Now

4. FedEx Corporation (NYSE:FDX)

Number of Hedge Fund Holders: 59

FedEx Corporation (NYSE:FDX) is a global provider of transportation and logistics services. Serving over 220 countries and territories, the company operates a vast network that includes express delivery, ground shipping, freight services, and e-commerce solutions.

FedEx offers a wide range of delivery services to meet various shipping needs. The company has an impressive infrastructure that includes one of the largest air cargo fleets in the world, which is crucial for efficient parcel delivery and logistics management.

Recently, FedEx Corporation (NYSE:FDX) announced its earnings for the first quarter of its fiscal year 2025, which fell short of expectations for both revenue and earnings per share (EPS). However, the company remains focused on improving its profitability through its DRIVE program, aiming to save $4 billion by the fiscal year 2025. In the first quarter alone, the company achieved significant savings of $390 million from this initiative, demonstrating its effectiveness in cutting costs.

The company has a substantial capital expenditure plan of $5.2 billion for FY 2025. This investment is directed toward high-return areas within its business, showing a commitment to long-term growth. As of August 31, FedEx Corporation (NYSE:FDX) has $5.9 billion in cash on hand and a strong balance sheet. This positions the company well to navigate challenges and invest in future opportunities.

FedEx Corporation (NYSE:FDX) successfully completed $1 billion in stock repurchases during the first quarter and plans to buy back an additional $1 billion in the second quarter. This strategy reflects the company’s confidence in its long-term growth and commitment to returning value to its shareholders.

Analysts are also bullish on FDX. Analysts currently hold a consensus buy rating on the stock and the 1-year median price target of $314.50 set by analysts indicates a potential upside of 14% from current levels.

According to Insider Monkey’s Q2 2024 database of over 900 hedge funds, 59 hedge funds held stakes in FedEx Corporation (NYSE:FDX).