We recently published a list of 10 Stocks Everyone is Talking About After Trump’s New Tariffs. In this article, we are going to take a look at where FedEx Corp (NYSE:FDX) stands against other stocks everyone is talking about after Trump’s new tariffs.
Countries are beginning to react to President Donald Trump’s new reciprocal tariffs and analysts believe things might not go according to the White House’s expectations, with American workers and consumers likely to see the impact of new duties.
Fred Kempe from Atlantic Council said in a latest program on CNBC that many countries can impose strong retaliatory tariffs against the US.
“I think we have to recognize what’s going to be implemented is going to be the highest effective tariff rate since the 1930s. What also happened in the 1930s is you had new trading blocks, you had new trading partners finding their way to each other, and you could find that that happens as well. And let’s not forget what also happened in the 1930s afterwards. We hope that’s not going to happen now, but, um, you know, a trade war just really never serves, in the end, global stability, global peace.”
Kempe said investors failed to realize that Trump does not “care” about falling stock prices as he is looking to change the global trade system.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we picked 10 stocks Wall Street analysts are talking about. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A driver unloading packages from a van for a time-critical delivery.
FedEx Corp (NYSE:FDX)
Number of Hedge Fund Investors: 55
FedEx Corp (NYSE:FDX) shares recently cratered after the company’s disappointing outlook. However, some analysts believe the stock is a buy for long-term and patient investors.
Ariel Rosa, Senior Analyst at Citi, said in a latest program on CNBC that most of the key issues facing FedEx Corp (NYSE:FDX) stem from macroeconomic uncertainties.
“It’s always a difficult balance. Right, and you see the stock price reaction; obviously, investors are not liking this cut to the outlook. That said, look, FedEx is a cheap stock, and it has been cheap for some time. So, for us, as we look at kind of where do we go with the stock in terms of our advice to investors, we’re continuing to say, look, it’s a buying opportunity, but you’re probably going to have to wait some time to see that play out and to see that earnings growth reacelerate. Because the reality is, FedEx has been executing well. They’ve had a number of cost-cutting initiatives underway, but the reality is FedEx, like any company, really can’t avoid a disappointing macro outlook. And amidst economic challenges, obviously, they’re going to be subject to that, and especially for a company like FedEx, which really is a bit of an economic bellwether. You see that playing out in their results.
So, the disappointing outlook is not so much a function of issues internal to FedEx; it’s really more a function of this challenging macro environment. So, the stock is cheap. We do think it’s a reasonable buy here, but for investors, you might have to be patient to see that materialize in the form of a higher share price.”
Sound Shore Management stated the following regarding FedEx Corporation (NYSE:FDX) in its Q3 2024 investor letter:
“Meanwhile, detractors of note for the quarter were connected by a common theme: signs of a slowing economy. NXP Semiconductors, a leading chip maker for the auto industry, was lower on uncertain auto demand and package hauler FedEx Corporation (NYSE:FDX) lagged on muted volume trends. Importantly, both of these companies have ways to increase earnings outside of the business cycle, but are not entirely immune to the recent slowdown. Business cyclicality requires investor patience and a long-term perspective – we have both.”
Overall, FDX ranks 8th on our list of best mid cap growth stocks. While we acknowledge the potential of FDX, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FDX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
