7 Best Warehouse Stocks To Buy According to Analysts

3. FedEx Corporation (NYSE:FDX)

Average Upside Potential: 18.01%

Number of Hedge Fund Holders: 59

FedEx Corporation (NYSE:FDX) is an American multinational conglomerate holding company that offers transportation, e-commerce, and business services, with a reach spanning more than 220 countries and territories. The firm has evolved from a single express service in 1973 to a global leader over the years.

The aforementioned broad portfolio of services allows FedEx to meet the needs of its customers, most of whom use services from two or more of its operating companies. FedEx Corporation (NYSE:FDX) has global logistics solutions to help optimize the supply chain. With over 40 million square feet of warehouse space, over 130 warehouse and distribution centers, as well as over 30 omni-channel and fulfillment facilities, FedEx has a lot to offer in terms of warehousing, distribution, and forward logistics.

The fiscal 2025 first quarter remained challenging as the firm made a foundational change to its internal structure to improve efficiency and reduce costs. The demand environment was also a challenge, particularly in U.S. domestic package market. FedEx reported earnings of $3.60 per share on revenue of $21.6 billion, which fell short of analysts’ expectations.

In the fourth quarter of 2023, the company moved into the era one FedEx, a consolidation plan to bring FedEx Ground and FedEx Services into Federal Express Corporation, a single company operating a unified, fully integrated air-ground express network under the FedEx brand. This was complemented by the rollout of Network 2.0, designed to optimize surface operations across the U.S. and Canada. The firm’s DRIVE program also remains on track to deliver $4 billion of savings compared to the fiscal 2023 baseline.

With a robust strategy to deliver long-term profitable growth through reducing costs and building on synergies between services, investors can potentially consider FedEx Corporation (NYSE:FDX). As of October 3, the stock has an average upside potential of 18.01%.