Back to top

Analyst Blog

In a move to expand globally, leading freight carrier FedEx Corp. (FDX - Analyst Report) is acquiring service provider, Supaswift and its subsidiaries that offer FedEx Express international services in Southern Africa. According to market reports, FedEx completed the first phase of the acquisition, which included businesses in South Africa, Malawi, Mozambique, Swaziland and Zambia. The company is also contemplating the acquisition of Supaswift's businesses in Botswana and Namibia.

The deal is expected to provide access to 7 markets in Southern Africa with operations through 39 facilities and the existing set up of 1,000 Supaswift's employees. The company believes that the acquisition would translate into business synergies arising from emerging markets like the African continent. 

We believe near-term earnings growth will be aided by increasing profitability in Freight coupled with continued growth in the Ground segment. Additionally, improving international revenues and operational efficiency in FedEx Express will also support earnings improvement, going forward.

FedEx is boosting its international business through substantial investments to enhance its existing routes and make strategic acquisitions. The company is building a new hub in Guangzhou, China, to cater to 100 new Chinese cities within the next five years.  Recently, the company announced that it will invest $100 million in China to strengthen its position in the country against its rival – United Parcel Service, Inc. (UPS - Analyst Report).

As for acquisitions, in 2012, the company took over Polish courier company Opek Sp. z o.o. as well as French B2B Express transportation company, TATEX. Soon after, the company acquired Rapidão Cometa, a Brazilian transportation and logistics company.

We believe the investments in organic growth as well as acquisitions will lead to greater operational efficiencies, providing a competitive edge, generating significant long-term synergies, supporting international business growth and driving profitability.

FedEx, which operates with the likes of Air Transport Services Group, Inc. (ATSG - Snapshot Report) and Radiant Logistics, Inc. (RLGT - Snapshot Report) retains a Zacks Rank #3 (Hold).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%