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FedEx Corporation (FDX) - free report >>
Knight-Swift Transportation Holdings Inc. (KNX) - free report >>
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FedEx Corporation (FDX) - free report >>
Knight-Swift Transportation Holdings Inc. (KNX) - free report >>
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Fedex (FDX) Rides On Strong Liquidity And Higher Revenues
We recently issued an updated report on FedEx Corporation (FDX - Free Report) .
FedEx has a strong cash position. The company exited the second quarter of fiscal 2021 with cash and cash equivalents of $8,339 million, above the debt load (current portion) of $97 million. This indicates that the company has sufficient cash to meet its current debt obligations.
Additionally, the company's current ratio, a measure of liquidity, was pegged at 1.76 at the end of fiscal second quarter, higher than the industry's average of 1.33. This liquidity ratio measures the company's ability to pay short-term obligations.
FedEx's second-quarter fiscal 2021 results were aided by surge in e-commerce demand during the current coronavirus-ravaged times. The company's performance in the quarter was driven by higher Ground revenues (up 38.2%) on residential delivery volume growth.
Meanwhile, there has been a significant reduction in air cargo capacity due to the loss of commercial airline capacity. Though commercial volumes have been improving since May, it is below year-ago levels.
Zacks Rank & Other Stocks to Consider
FedEx currently sports a Zacks Rank #1 (Strong Buy).
Investors interested in the broader Zacks Transportation sector can also consider stocks like Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , Landstar System, Inc. (LSTR - Free Report) and Herc Holdings Inc. (HRI - Free Report) . Landstar and Knight-Swift carry a Zacks Rank #2 (Buy), while Herc Holdings sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Landstar and Herc Holdings is pegged at 15%, 12% and 12.6%, respectively.
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