4-Star Stocks Poised to Pop: FedEx
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, express delivery giant FedEx (NYS: FDX) has earned a respected four-star ranking.
With that in mind, let's take a closer look at FedEx's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Memphis, Tenn. (1971)|
|Market Cap||$29.0 billion|
|Industry||Air freight and logistics|
|Trailing-12-Month Revenue||$42.2 billion|
|Management||Founder/Chairman/CEO Frederick Smith|
CFO Alan Graf
|Return on Equity (average, past 3 years)||7.1%|
|Cash/Debt||$2.0 billion / $1.7 billion|
United Parcel Service
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 2,322 members who have rated FedEx believe the stock will outperform the S&P 500 going forward.
While FedEx tends to trade with the winds of the global economy, it has a nearly impossible franchise to replicate and it has key scale advantages. Aside from UPS, the company's competitors continue to struggle (I'm looking at you USPS and DHL). Online shopping is still in its infancy the low cost provider will continue to win this business -- FedEx is well positioned. The feather in the company's cap is its ability to raise prices year-in and year-out to pass along rising input costs and simply to boost its profitability. The shares of this premium company are selling as if the company itself is average.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of FedEx. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.