Jim Cramer’s Game Plan for This Week: 8 Stocks in Focus

4. FedEx Corporation (NYSE:FDX)

Number of Hedge Fund Holders: 55

Cramer thinks that FedEx Corporation (NYSE:FDX) will report good tidings when it announces its second-quarter fiscal 2025 earnings report.

“The transports have been picking up of late, which tells me maybe we gotta be a little more hopeful when the great FedEx reports. This company’s been working hard to take out costs and it’s still working aggressively to improve gross margins. I think we’ll hear good things… This is the period where people are most nervous about it because of the upcoming holiday.”

FedEx (NYSE:FDX) offers transportation, e-commerce, and business services, including express transportation, small-package delivery, freight transportation, and various business support services. The company is undergoing significant restructuring as part of its DRIVE transformation plan, which is expected to result in $2.2 billion in permanent cost reductions for the fiscal year.

Rajesh Subramaniam, President, Chief Executive Officer, and Director, mentioned that the company has implemented new pricing strategies, including adjustments to demand and fuel surcharges, which are expected to positively impact the company’s performance in the upcoming quarters. It also updated its financial outlook for fiscal 2025. The company now expects low single-digit percentage revenue growth year over year, which is lower than its previous forecast of a low-to-mid single-digit percentage increase.

In terms of earnings, FedEx (NYSE:FDX) revised its forecast for earnings per diluted share to a range of $17.90 to $18.90 before accounting adjustments related to retirement plans, compared to its earlier expectation of $18.25 to $20.25 per share. Despite these revisions, the company reaffirmed its forecast for capital spending, which is set at $5.2 billion.