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Here's How Much a $1000 Investment in FedEx Made 10 Years Ago Would Be Worth Today
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in FedEx (FDX - Free Report) ten years ago? It may not have been easy to hold on to FDX for all that time, but if you did, how much would your investment be worth today?
FedEx's Business In-Depth
With that in mind, let's take a look at FedEx's main business drivers.
Based in Memphis, TN, FedEx Corporation is the leader in global express delivery services. The company, founded in 1971, provides a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand.
The company is currently reporting, primarily through the FedEx Express (including TNT Express acquired in 2016), FedEx Ground and FedEx Freight segments. These segments contributed 51.3%, 32.8% and 10.3% respectively to the company’s total revenues in fiscal 2020.
FedEx Express offers time-definite delivery to more than 220 countries and territories, connecting markets that comprise almost the entire gross domestic product of the world.
FedEx Express employs approximately 245,000 employees and has approximately 98,000 drop-off locations (including FedEx Office stores and FedEx OnSite locations), 679 aircraft and approximately 79,000 vehicles across the globe.
FedEx Ground offers low-cost, day-certain service to any business address in the United States and Canada, as well as residential delivery in the United States through its FedEx Home Delivery service.
FedEx SmartPost is also an offering of the FedEx Ground segment that focuses in the consolidation and delivery of high volumes of low-weight, less time-sensitive business-to-consumer packages.
Through the FedEx Freight segment, the company offers less-than-truckload (“LTL”) freight services in the United States. The division also offers freight delivery service to destinations in Canada, Mexico, Puerto Rico and the U.S. Virgin Islands. At the end of fiscal 2020 (ended May 31, 2020), the segment operated approximately 30,000 vehicles and 373 service centers.
Through the FedEx Services segment, which includes FedEx office and print services, the company offers various services like sales, marketing, information technology, billing and collection.
Moreover, the FedEx Logistics (formerly known as FedEx Trade Networks) operating segment offers services pertaining to customs brokerage, and global ocean and air freight forwarding through FedEx Trade Networks Transport & Brokerage. Notably, results of the FedEx Logistics unit are reported under “Corporate, other and eliminations.”
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For FedEx, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in May 2011 would be worth $3,299.94, or a gain of 229.99%, as of May 24, 2021, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 211.70% and gold's return of 18.47% over the same time frame.
Going forward, analysts are expecting more upside for FDX.
FedEx is benefiting significantly from the coronavirus-driven rise in e-commerce demand. Higher Ground revenues (up 37% in the first nine months of fiscal 2021), thanks to residential delivery volume growth, are boosting the company’s top line. In such a scenario, the company’s acquisition of Chicago-based e-commerce platform, ShopRunner, is a prudent move. FedEx’s measures to reward its shareholders are also encouraging. However, escalating operating expenses (increased 15% year over year in the first nine months of fiscal 2021) pose a threat to the company’s bottom line. The increased forecast for fiscal 2021 capital expenditures is also concerning. High capital expenditures may further impede bottom-line growth. Partly due to these headwinds, shares of the company have underperformed its industry in the past six months.
Over the past four weeks, shares have rallied 11.47%, and there have been 3 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in FedEx Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in FedEx (FDX - Free Report) ten years ago? It may not have been easy to hold on to FDX for all that time, but if you did, how much would your investment be worth today?
FedEx's Business In-Depth
With that in mind, let's take a look at FedEx's main business drivers.
Based in Memphis, TN, FedEx Corporation is the leader in global express delivery services. The company, founded in 1971, provides a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand.
The company is currently reporting, primarily through the FedEx Express (including TNT Express acquired in 2016), FedEx Ground and FedEx Freight segments. These segments contributed 51.3%, 32.8% and 10.3% respectively to the company’s total revenues in fiscal 2020.
FedEx Express offers time-definite delivery to more than 220 countries and territories, connecting markets that comprise almost the entire gross domestic product of the world.
FedEx Express employs approximately 245,000 employees and has approximately 98,000 drop-off locations (including FedEx Office stores and FedEx OnSite locations), 679 aircraft and approximately 79,000 vehicles across the globe.
FedEx Ground offers low-cost, day-certain service to any business address in the United States and Canada, as well as residential delivery in the United States through its FedEx Home Delivery service.
FedEx SmartPost is also an offering of the FedEx Ground segment that focuses in the consolidation and delivery of high volumes of low-weight, less time-sensitive business-to-consumer packages.
Through the FedEx Freight segment, the company offers less-than-truckload (“LTL”) freight services in the United States. The division also offers freight delivery service to destinations in Canada, Mexico, Puerto Rico and the U.S. Virgin Islands. At the end of fiscal 2020 (ended May 31, 2020), the segment operated approximately 30,000 vehicles and 373 service centers.
Through the FedEx Services segment, which includes FedEx office and print services, the company offers various services like sales, marketing, information technology, billing and collection.
Moreover, the FedEx Logistics (formerly known as FedEx Trade Networks) operating segment offers services pertaining to customs brokerage, and global ocean and air freight forwarding through FedEx Trade Networks Transport & Brokerage. Notably, results of the FedEx Logistics unit are reported under “Corporate, other and eliminations.”
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For FedEx, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in May 2011 would be worth $3,299.94, or a gain of 229.99%, as of May 24, 2021, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 211.70% and gold's return of 18.47% over the same time frame.
Going forward, analysts are expecting more upside for FDX.
FedEx is benefiting significantly from the coronavirus-driven rise in e-commerce demand. Higher Ground revenues (up 37% in the first nine months of fiscal 2021), thanks to residential delivery volume growth, are boosting the company’s top line. In such a scenario, the company’s acquisition of Chicago-based e-commerce platform, ShopRunner, is a prudent move. FedEx’s measures to reward its shareholders are also encouraging. However, escalating operating expenses (increased 15% year over year in the first nine months of fiscal 2021) pose a threat to the company’s bottom line. The increased forecast for fiscal 2021 capital expenditures is also concerning. High capital expenditures may further impede bottom-line growth. Partly due to these headwinds, shares of the company have underperformed its industry in the past six months.
Over the past four weeks, shares have rallied 11.47%, and there have been 3 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.