Bill Gates’ 10 Stock Positions with Huge Upside Potential

4. FedEx Corporation (NYSE:FDX)

Analyst Upside: 34.91%

No. of Hedge Fund Holders: 66

FedEx Corporation (NYSE:FDX) is a global leader in logistics, e-commerce solutions, and express shipping. It provides professional transportation, e-commerce, and business services to customers worldwide. Serving in more than 220 countries, the company operates through the following segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services.

FedEx Corporation (NYSE:FDX) is working on new strategies such as DRIVE, which is a program to enhance its delivery, reliability, innovation, and value every day. DRIVE leverages data and technology to improve network optimization and cost management. This program is expected to save approximately $4 billion by the end of FY2025 compared to the FY2023 baseline.

Facing the headwinds from the tariff policy, analysts are making a notable cut to the price target of FDX. Recently, Ariel Rosa from Citigroup reduced the price target on FDX from $305 to $267, maintaining a Buy rating on the shares.

Longleaf Partners Fund stated the following regarding FedEx Corporation (NYSE:FDX) in its Q1 2025 investor letter:

“FedEx Corporation (NYSE:FDX) – Global logistics company FedEx was a detractor for the quarter. The company faced macro headwinds, including tariff threats and ongoing demand weakness in the US. The company is growing market share and margins in its formerly challenged European business, and this was a driver for the Express business to report low-single-digit topline growth that turned into double-digit cash flow growth. The Freight business saw a decline like its peers, who are also wrestling with weak industrial conditions. FedEx remains on track to separate into two entities: Express and Freight. This split should provide both companies with greater financial flexibility and accountability, allowing them to be run more efficiently. The market has consistently undervalued FedEx’s Freight operations, and a large discount to UPS is no longer warranted for the Express business. Tariff headwinds will be challenging to navigate, but we are glad the company is more on offence now than it has been in previous downturns.”