Why FedEx (FDX) is an Excellent Option for Value Investors
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Updated: 4 day ago0mins
Momentum Investing Overview: Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of buying low. This approach can be risky as stocks may lose momentum if their valuations exceed growth potential.
FedEx as a Momentum Stock: FedEx (FDX) has shown strong price momentum, with a 7.3% increase over four weeks and a 19.8% gain over 12 weeks, making it a strong candidate for momentum investing.
Valuation and Earnings Estimates: FDX is trading at a reasonable Price-to-Sales ratio of 0.72, indicating it is attractively priced despite its momentum. Additionally, upward revisions in earnings estimates contribute to its strong momentum score and Zacks Rank #2 (Buy).
Investment Strategy Tools: Investors can utilize Zacks Premium Screens and the Research Wizard to identify winning stocks and backtest strategies, enhancing their stock-picking effectiveness.
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Analyst Views on FDX
Wall Street analysts forecast FDX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for FDX is 271.61 USD with a low forecast of 200.00 USD and a high forecast of 320.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
11 Buy
7 Hold
2 Sell
Moderate Buy
Current: 274.050
Low
200.00
Averages
271.61
High
320.00
Current: 274.050
Low
200.00
Averages
271.61
High
320.00
JPMorgan
Neutral
maintain
$274 -> $285
2025-12-04
New
Reason
JPMorgan
Price Target
$274 -> $285
2025-12-04
New
maintain
Neutral
Reason
JPMorgan raised the firm's price target on FedEx to $285 from $274 and keeps a Neutral rating on the shares. The firm has a neutral stance on the shares into the December 18 earnings report. It sees limited near-term upside for the stock after management raised the fiscal Q2 outlook despite the MD-11 grounding.
Susquehanna
Bascome Majors
Positive
maintain
$300 -> $345
2025-12-04
New
Reason
Susquehanna
Bascome Majors
Price Target
$300 -> $345
2025-12-04
New
maintain
Positive
Reason
Susquehanna analyst Bascome Majors raised the firm's price target on FedEx to $345 from $300 and keeps a Positive rating on the shares. The firm updated its model and raised its F2Q26 and F2026 forecasts slightly, establishing an initial F2027 outlook, and shifting their valuation framework to capitalize F2027 now that it is midway through this fiscal year.
Stifel
analyst
Buy
maintain
$296 -> $297
2025-11-20
Reason
Stifel
analyst
Price Target
$296 -> $297
2025-11-20
maintain
Buy
Reason
Stifel raised the firm's price target on FedEx to $297 from $296 and keeps a Buy rating on the shares. After guiding Q2 earnings as sequentially improved in September, management has re-framed expectations upwards to both quarter-over-quarter and year-over-year improvement, notes the analyst, who is tweaking the firm's earnings estimates higher to reflect management commentary.
Citi
Buy
maintain
$279 -> $310
2025-11-13
Reason
Citi
Price Target
$279 -> $310
2025-11-13
maintain
Buy
Reason
Citi raised the firm's price target on FedEx to $310 from $279 and keeps a Buy rating on the shares after meeting with management. The firm believes FedEx's cost cutting momentum is building along with potential upside on an improved macro backdrop.
See All Ratings
About FDX
FedEx Corporation provides customers and businesses with a portfolio of transportation, e-commerce, and business services. The Company offers integrated business solutions utilizing its flexible and efficient global network. Its segments include Federal Express, FedEx Freight, and Corporate, other, and eliminations. Federal Express segment includes express transportation, small-package ground delivery, and freight transportation, and it also operates combined sales, marketing, administrative, and information-technology functions in shared service operations for United States customers. FedEx Freight segment includes FedEx Freight (LTL freight transportation) and FedEx Custom Critical (time-critical transportation). Corporate, other, and elimination segments include FedEx Dataworks, Inc. (FedEx Dataworks), FedEx Office and Print Services, Inc. (FedEx Office), and FedEx Logistics, Inc. (FedEx Logistics). FedEx Logistics offers customs brokerage, specialty transportation, and others.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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