Deep Dive Into FedEx Stock: Analyst Perspectives (5 Ratings)

In the last three months, 5 analysts have published ratings on FedEx FDX, offering a diverse range of perspectives from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $304.0, with a high estimate of $320.00 and a low estimate of $275.00. Experiencing a 3.57% decline, the current average is now lower than the previous average price target of $315.25.

Exploring Analyst Ratings: An In-Depth Overview

The analysis of recent analyst actions sheds light on the perception of FedEx by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to FedEx. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of FedEx compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for FedEx's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into FedEx's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on FedEx analyst ratings.

Get to Know FedEx Better

FedEx pioneered overnight delivery in 1973 and remains the world's largest express package provider. In its fiscal 2023, which ended May 2023, FedEx derived 47% of revenue from its express division, 37% from ground, and 11% from freight, its asset-based less-than-truckload shipping segment. The remainder comes from other services, including FedEx Office, which provides document production/shipping, and FedEx Logistics, which provides global forwarding. FedEx acquired Dutch parcel delivery firm TNT Express in 2016. TNT was previously the fourth-largest global parcel delivery provider.

Financial Insights: FedEx

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Decline in Revenue: Over the 3 months period, FedEx faced challenges, resulting in a decline of approximately -2.84% in revenue growth as of 30 November, 2023. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: FedEx's net margin excels beyond industry benchmarks, reaching 4.05%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): FedEx's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.37% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): FedEx's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.02%, the company showcases efficient use of assets and strong financial health.

Debt Management: FedEx's debt-to-equity ratio is below the industry average. With a ratio of 1.43, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.