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Here's Why Investors Should Bet on FedEx Stock Right Now

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Key Takeaways

  • FDX shares rose 3.9% in a year, beating the industry's 5% decline.
  • Pharma certification boosts healthcare logistics and customer trust.
  • Fleet modernization and cost efficiencies support FDX's long-term growth.

FedEx Corporation’s (FDX - Free Report) top line is bolstered by its robust segmental performance and solid operational efficiency, boosting the company’s prospects. Fleet modernization initiatives are also encouraging. Due to these tailwinds, FDX shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.

Let’s delve deeper.

Factors Favoring FDX Stock

Northward Earnings Estimate Revision: The Zacks Consensus Estimate for earnings per share has been revised upward by 0.33% over the past 60 days for the current fiscal year. For fiscal 2026, the consensus mark for earnings per share has moved 0.10% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.

Robust Price Performance: A look at the company’s price trend reveals that its shares have rallied 3.9% over the past year, surpassing the  Zacks Transportation - Air Freight and Cargoindustry’s 5% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

Solid Zacks Rank:  Currently, FDX carries a Zacks Rank #2 (Buy).

Bullish Industry Rank: The industry to which FedEx belongs currently has a Zacks Industry Rank of 34 (out of 245). Such a favorable rank places it in the top 14% of Zacks Industries.Studies show that 50% of a stock price movement is directly related to the performance of the industry group to which it belongs.

A mediocre stock within a strong group is likely to outperform a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative in this context.

Other Tailwinds: FedEx’s achievement of becoming the first global integrator to secure the IATA CEIV Pharma Corporate Certification in May 2025 underscores its strong performance and growing leadership in the pharmaceutical logistics market. By certifying hubs, ramps and 15 additional facilities worldwide, the company is reinforcing its ability to provide safe, compliant and high-quality end-to-end solutions in a highly regulated and time-sensitive industry. With more than 90% of its global healthcare volume now moving through CEIV Pharma-certified facilities, FDX is not only strengthening customer trust but also positioning its healthcare business as a critical growth driver, contributing to FedEx’s overall competitiveness and long-term value creation.

FedEx delivered a resilient performance in the fourthquarter of fiscal 2025, with the Federal Express segment showing improvement supported by DRIVE cost efficiencies, stronger U.S. and international export volumes and higher yields, while the Freight segment managed to partially offset headwinds through pricing discipline and asset gains.

Moreover, the company continues to advance its fleet modernization strategy by retiring older aircraft, which will enhance long-term efficiency and network alignment. Compared to last year’s heavier impairment and tax charges, this quarter’s significantly lower one-time costs demonstrate FedEx’s progress toward a leaner, more efficient and strategically positioned business for sustainable growth.

Other Stocks to Consider

Investors interested in the Transportation sector may also consider LATAM Airlines Group (LTM - Free Report) and SkyWest (SKYW - Free Report) .

LTM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

LTM has an expected earnings growth rate of 45% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, missed once and met in the remaining one, delivering an average beat of 4.04%.

SKYW currently sports a Zacks Rank #1.

SkyWest has an expected earnings growth rate of 28.06% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 21.92%.


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