FedEx Corporation (FDX - Free Report) has appointed Don Colleran as the new president and chief executive officer of its Express division. Colleran will discharge his responsibilities beginning Mar 16.
Colleran currently performs the role of the company’s executive vice president and chief sales officer. He assumed this role in 2017. Jill Brannon, a FedEx veteran of more than 30 years, will replace Colleran in that position.
Previously, Raj Subramaniam, current president and chief operating officer of FedEx, was in charge of Colleran’s new responsibilities. Subramaniam was appointed as president and chief executive officer of the Express unit earlier this January. On David Bronczek’s sudden retirement as FedEx’s president and COO in February, Subramaniam was asked to take over the reins besides carrying out his own duties.
Coming back to Colleran, he has nearly three decades’ experience to his credit at FedEx. He has hitherto held several executive ranks, such as international sales manager in Philadelphia, president of FedEx Express Canada, senior vice president of international sales and executive vice president of global sales.
FedEx’s president and chief operating officer is confident that Colleran’s capabilities will help drive the Express division.
We remind investors that the company’s Express unit (major revenue generating segment) has been undergoing turbulent times lately due to a slowdown in global trade. As a result, the company will also not be able to achieve its objective of raising Express segment operating income by $1.2-$1.5 billion in fiscal 2020. What’s worse is that the Express unit is expected to remain under pressure for a while now.
Given such a scenario, it remains to be seen whether Colleran is able to bring some respite to the stressed Express division.
Zacks Rank & Key Picks
FedEx carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are Atlas Air Worldwide Holdings (AAWW - Free Report) , Avianca Holdings S.A. (AVH - Free Report) and Radiant Logistics, Inc. (RLGT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Atlas Air Worldwide, Avianca Holdings and Radiant Logistics have rallied more than 16%, 13% and 44%, respectively, on a year-to-date basis.
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