FedEx Corporation, together with its subsidiaries, provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. The FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; and time-critical transportation services. The FedEx Ground segment provides small-package ground delivery services. The FedEx Freight segment offers less-than-truckload freight transportation services. The FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection, and back-office support services. In addition, the company offers supply chain management solutions; and air and ocean freight forwarding and cargo transportation, specialty transportation, customs brokerage, third party logistics and supply chain, and document and business solutions, as well as provides trade management tools and data. The company was founded in 1971 and is headquartered in Memphis, Tennessee.

FedEx appears to be a mature business with strong revenue and stable profitability, but with several signs that limit further upside revaluation. Valuations on P/E, P/S, and P/FCF are below the industry median, which supports the case for relative undervaluation; however, P/B is noticeably above the industry, which usually means the market is already pricing in higher capital quality. Return on capital looks decent: ROE is above the median, while ROA and operating margin are below it, indicating acceptable but not outstanding asset efficiency and operating leverage. It is especially important that operating margin and net margin remain below industry benchmarks and do not show a sharp acceleration, so the fundamental upside from multiples is limited. The debt burden is above the median, and long-term debt has increased over the period, which adds caution to the valuation despite comfortable quick and current ratios. On the other hand, the cash position has improved significantly, cash on hand has increased, and both equity and assets are growing, which supports financial stability. Revenue, gross profit, and EBITDA are generally growing, and gross margin is very high and stable, indicating strong gross economics of the business. At the same time, profitability at the operating line and after taxes is rising only moderately, without signs of a sharp improvement, so the market is unlikely to expand multiples aggressively. Dividend yield has declined, which reduces the stock’s appeal for income investors and does not provide an additional re-rating catalyst. Overall, the fundamentals rather support the company’s current high valuation, but do not justify a meaningful increase in the target price. For an investor, this is a story about a high-quality, cash-generative, and large-scale business with good liquidity and acceptable returns on capital, but with limited revaluation potential due to debt load and less-than-ideal operating margin. Therefore, the forecast adjustment should be moderately negative and conservative.

FedEx Corporation

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, незначительно упал. Рынок не поддерживает быков.

Strong index, slightly down. The market does not support the bulls.

Средний индекс, без изменений. Отток средств из лонгов на высоком уровне.

Medium index, flat. Outflow of funds from longs at a high level.

Strong revenue and gross margin support FedEx, but high leverage, weaker-than-industry operating margin, and an expensive P/B limit the upside.

United Parcel Service UPS and FedEx FDX, with market capitalizations of $98.46 billion and $75.95 billion, respectively, are leading players in the Zacks Transportation-Air Freight and Cargo industry. These well-established companies are synonymous with parcel delivery and logistics.
Delivery trucks from both companies have become a common sight, reflecting their dominance in handling the bulk of parcel shipments. With that backdrop, let’s take a closer look at their financial performance, growth prospects and ongoing challenges. As a result, let's find out which transportation heavyweight might be the smarter investment for now.
The Case for UPS
UPS has been facing prolonged revenue pressure, as geopolitical instability and persistent inflation continue to dampen consumer confidence and economic growth expectations. Uncertainty related to tariffs and geopolitical woes has further intensified these challenges.
UPS’ decision to scale back business with Amazon AMZN is expected to have kept near-term volumes muted. Management reached an agreement in principle with Amazon to reduce the e-commerce giant’s volume by more than 50% by June 2026. CEO Carol Tome noted that Amazon was not the company’s most profitable customer. The reduction in volumes is compelling UPS to right-size its network.
UPS is now focusing on improving profitability over sheer volume. Under the cost-cutting initiatives, UPS has substantially reduced its U.S. operational workforce and closed daily operations at multiple leased and owned buildings. Moreover, UPS has been focusing on increasing automation in sorting and operations and leveraging AI for logistics planning to boost efficiency.
The shift in focus toward higher-margin areas such as small and medium-sized businesses or SMBs and healthcare logistics from low-margin volumes (like Amazon) is expected to aid its per-package revenues. Notably, SMBs contributed 34.5% to total U.S. volume in the March quarter, reflecting the highest SMB penetration in UPS’ history. We expect SMBs to keep performing well.
The De Minimis exemption expired last year. The trade exemption allowed packages containing goods valued at less than $800 to enter the United States without additional taxes. This development has hurt the International segment volumes in recent quarters by diverting volumes away from the China-U.S. trade lane.
Moreover, UPS’ dividend payout ratio stands at 97, raising questions about its long-term ability to maintain current dividend levels. The company’s elevated dividend payout is hurting its operational flexibility.
The Case for FDX
In the fourth quarter of fiscal 2026, results of which were released last month, FedEx’s earnings (excluding 29 cents from non-recurring items) of $6.31 per share beat the Zacks Consensus Estimate of $5.91 as well as improved 3.9% year over year. Revenues of $25 billion came ahead of the Zacks Consensus Estimate of $24.1 billion and improved 12.5% from the year-ago quarter.
In the quarter, the majority of the revenue growth was driven by business-to-business (B2B) services and the three-month period was the brightest quarter within fiscal year 2026 from a B2B perspective. This is in line with the company’s continuous efforts to move away from low-margin parcel traffic.
To bolster margins, FedEx is shifting its focus toward high-margin B2B segments — specifically healthcare, aerospace, automotive and data centers. In Europe, the company achieved its 12th consecutive quarter of international revenue share gains, driven by the strong value proposition and improving service levels.
Apart from focusing on AI tools to improve efficiency and customer experience, the transportation giant is keeping CapEx low to boost profitability. As part of its cost discipline, the company aims to achieve a CapEx of $3.9 billion in calendar year 2026. We note that the company has changed its fiscal year-end from May 31 to Dec. 31. The fiscal year change became effective for the period beginning June 1, 2026.
For the calendar year 2026, FedEx anticipates revenue growth of approximately 11%, including about 3 percentage points of assumed fuel price-driven surcharge benefit. The outlook is likely to be supported by continued momentum within base pricing and increased demand for premium B2B and high-value B2C services. This translates to an adjusted EPS range of $16.90 to $18.10. Robust free cash flow is expected to be generated in the period, with the company intending to repurchase up to $1 billion worth of shares. The company expects to generate cost savings worth $2 billion by the end of calendar 2027.
Despite ongoing headwinds, FedEx benefits from a strong brand and an extensive logistics network capable of generating stable long-term cash flows. Strategic investments continue to enhance the service offerings and strengthen its competitive position.
FedEx spun off its struggling Freight division in June 2026, thereby focusing on the core operations. The erstwhile segment of FDX was suffering due to the continued weakness in U.S. industrial production, which dampened demand across the less-than-truckload industry.
FDX’s dividend payout ratio currently stands at 24%, much lower than UPS’. So FDX, unlike UPS, does not face concerns about its long-term ability to maintain current dividend levels.
Taking a Look at the Two Companies’ Price Performance and Valuation
In a year, FDX’s shares have performed much better than those of UPS
One-Year Price Comparison
UPS is trading at a forward sales multiple of 1.05X, whereas FDX’s forward sales multiple sits at 0.79X, suggesting that the former’s shares are pricier.
Leverage Comparison
FDX’s lower debt-to-capital ratio implies that it relies less on debt financing and has a stronger equity position.
End Note
Agreed that both FedEx and UPS continue to experience revenue pressure amid sluggish demand conditions. To navigate the challenging environment, each company is pursuing cost-reduction initiatives.
From a valuation as well as pricing standpoint, FDX appears more attractive than UPS. FedEx also maintains an edge over UPS in terms of financial leverage. Dividend sustainability concerns are not present in FDX, unlike UPS.
Taking all these factors into account, FDX appears to be the more compelling choice than UPS, even though both stocks currently carry a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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UPS vs. FDX: Which Parcel Delivery Giant Holds the Edge Now?

It has been about a month since the last earnings report for FedEx (FDX). Shares have added about 1.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is FedEx due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for FedEx Corporation before we dive into how investors and analysts have reacted as of late.
Earnings Beat at FedEx in Q4
FedEx reported solid fourth-quarter fiscal 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings (excluding 29 cents from non-recurring items) of $6.31 per share beat the Zacks Consensus Estimate of $5.91 as well as improved 3.9% year over year. The company’s bottom line benefited from share repurchase activity.
Revenues of $25.0 billion came ahead of the Zacks Consensus Estimate of $24.1 billion and improved 12.5% from the year-ago fiscal quarter’s reported figure.
Apart from the better-than-expected results, FDX has also raised its full-year fiscal 2026 guidance for revenues and earnings. For fiscal 2026, FedEx now expects revenue growth to be up almost 11% on a year-over-year basis (prior view: up 6-6.5%). Earnings per share (EPS) are now anticipated to be between $16.55 and $17.75 before the MTM retirement plans accounting adjustments compared with the prior guidance of $16.05-$16.85.
Operating income, on a reported basis, increased 3.4% to $2.09 billion from the year-ago fiscal quarter’s reported number. Operating margin fell to 8.4% from 9.1% in the year-ago reported quarter. Operating income improved in the fiscal fourth quarter on the back of continued strength in U.S. Domestic and International Priority package yields, cost savings from transformation initiatives and increased U.S. domestic and international export package volume.
Operating expenses (reported basis) increased 15% to $23.4 billion.
In January 2025, FedEx’s board of directors announced a change in the company’s fiscal year-end from May 31 to Dec. 31. The fiscal year change became effective for the period beginning June 1, 2026.
The spin-off of FedEx Freight into a new publicly traded company was completed on June 1, 2026. In connection with the spin-off, FedEx Freight paid a cash dividend of almost $4.1 billion to FedEx from the proceeds of the $3.7 billion senior notes offering completed in February 2026 and borrowings under its delayed-draw term loan facility.
FedEx Freight will discuss its fiscal fourth-quarter results on June 25, 2026, through a call.
Segmental Performance During the Quarter
FedEx Express segment’s revenues grew 14% year over year to $21.5 billion. The Federal Express segment benefited from higher U.S. domestic and International Priority package yields, continued cost savings from transformation initiatives and increased U.S. domestic and international export package volume. These factors were partially offset by increased purchased transportation and wage rates, higher variable incentive compensation expenses and the financial impacts of global trade policy changes.
FedEx Freight revenues grew 5% from the year-ago fiscal quarter’s reported figure to $2.40 billion.
Average daily shipments fell 6% year over year. Capital expenditures for the reported quarter were $1.47 billion.
Liquidity
FedEx exited fourth-quarter fiscal 2026 with cash and cash equivalents of $13.3 billion compared with $8.01 billion at the end of the prior quarter. Long-term debt (less current portion) was $23.2 billion compared with $22.8 billion at prior-quarter end.
During fiscal 2026, FedEx returned almost $2.2 billion to shareholders, which includes $776 million in the form of share repurchases and $1.4 billion through dividend payments. As of May 31, 2026, $1.3 billion was available under the company's 2024 stock repurchase authorization.
Remaining Aspects of 2026 Outlook
EPS, after excluding costs related to business optimization initiatives, the planned spin-off of FedEx Freight, and the planned change in the company's fiscal year end, is now expected between $16.90 and $18.10 compared with the prior guided range of $19.30 to $20.10.
Pension contributions are now expected to be up to $475 million (prior view: $275 million).
For fiscal 2026, FedEx now anticipates capital spending of $3.9 billion (prior view: $4.1 billion), prioritizing investments in network optimization and efficiency improvement, which includes fleet and facility modernization and automation. The effective tax rate is now estimated to be around 23% compared with the prior expectation of 24%.
For 2026, FedEx remains committed to rewarding its shareholders, which includes the previously announced 5% increase in the annual dividend on its common stock, after adjusting for the FedEx Freight spin-off. FDX also plans to repurchase up to $1 billion worth of shares opportunistically, leveraging continued balance sheet flexibility and free cash flow generation to offset dilution from equity compensation.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, FedEx has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
FedEx has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

FedEx (FDX) Up 1.3% Since Last Earnings Report: Can It Continue?

Key Points
A stable diverse client base almost ensures a steady stream of revenue.
Its monthly dividend continues to rise despite its high yield.
Higher interest rates have not stopped it from growing.
When it comes to investing, prospective shareholders often overlook real estate stocks like Realty Income (NYSE: O). This is likely because they tend to generate slower growth and less excitement than counterparts in technology and other fast-growth industries.
Fortunately, Realty Income makes up for that lack of excitement with its stability and the strength of its competitive moat. Specifically, three reasons explain why investors may want to buy stock in the real estate investment trust (REIT) and never sell.
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1. A diverse, stable client base
Realty Income specializes in single-tenant, net-leased properties. Under these agreements, tenants pay the insurance, maintenance costs, and taxes on the property. This ensures Realty Income maintains a steady revenue stream for rent with fewer worries about unexpected expenses.
However, aside from the lease agreements themselves, the strength of its competitive moat appears to revolve around its client base. Many of the world's best-known companies, such as Walmart, Wynn Resorts, and FedEx, operate from properties owned by Realty Income. Since these tend to be stable, profitable companies, Realty Income rarely struggles to collect rent on the approximately 15,600 properties it owns.
Also, since renting frees up capital for other purposes, such companies benefit by using the company's properties. In fact, with occupancy rates close to 99%, Realty Income remains focused on developing and acquiring additional properties to rent to more tenants. Along with the gradual increase in rental rates, this approach ensures that its revenue continues growing.
2. The generous monthly dividend
Another reason to buy and hold Realty Income is its dividend. True to its nickname as the "monthly dividend company," it has paid a dividend every month since it began payouts in 1994. Moreover, it has increased its dividend at least one time per year since beginning its payout, making it more likely to provide a lifetime of passive income.
That payout amounts to just over $3.25 per share annually, a dividend yield of just over 4.9%. This is well above the S&P 500 average of 1.1%. Also, since it earned $4.26 per share in funds from operations (FFO) income over the trailing 12 months, Realty Income generates enough cash to cover dividend expenses.
More importantly, that return compares well with rates on government bonds, making the payout particularly attractive to income investors. Additionally, they can benefit from the periodic payout hikes and, probably, a rising stock price over the long term. That provides income investors with a compelling incentive to choose Realty Income stock over a fixed income instrument.
3. Continued growth in most business environments
Furthermore, Realty Income stock trades well below its all-time high closing price of nearly $80 per share reached in early 2020. However, since 2022, rising interest rates appeared to dampen enthusiasm for Realty Income stock, and the stock price fell.
Admittedly, a lower interest rate environment would likely help Realty Income buy more properties. Nonetheless, higher rates did not hamper portfolio expansion.
In the first quarter of 2021, the company owned just under 6,700 properties. Over the course of five years, that has grown to almost 15,600 properties. The purchase of VEREIT in late 2021 helped expand it to more than 11,100 locations amid lower rates. Also, higher interest rates did not stop the purchase of Spirit Realty in early 2024, an acquisition that brought the number of properties close to the present number.
The difference investors should note is that the company's stock price has not increased since Realty Income more than doubled the size of its property portfolio. Thus, as more investors realize Realty Income's improving value proposition, it could eventually lead to a stock price recovery.
Making sense of Realty Income's competitive moat
All three of these reasons above not only build a case for owning Realty Income stock but also reinforce the company's competitive moat.
Since many of the world's top companies rent its properties, its property portfolio provides a stable revenue source unlikely to unravel quickly.
Moreover, the 4.9% dividend yield gives income investors an incentive to buy the stock, particularly since they will likely benefit from dividend increases and, over time, a rising stock price. Also, since the company has found ways to acquire more properties in a variety of interest rate environments, investors should feel confident its growth can continue.
All of these factors combine to create a deep competitive moat that will likely continue to grow regardless of the overall economy. Ultimately, that positions Realty Income to provide income investors with steady, growing returns.
Should you buy stock in Realty Income right now?
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Will Healy has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income and Walmart. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This Dividend Stock's Moat Is as Wide as It Gets. 3 Reasons to Buy and Hold Forever.

Friday, July 17, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), JPMorgan Chase & Co. (JPM) and ExxonMobil Holdings Corp. (XOM), as well as two micro-cap stocks Smith-Midland Corp. (SMID) and Coffee Holding Co., Inc. (JVA). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-Markets Down on Weak Overnight in Asia
Today's Featured Research Reports
Shares of Apple have gained +57.3% over the past year against the Zacks Computer - Micro Computers industry’s gain of +62%. The company’s March quarter results showed demand for the iPhone 17 lineup and record Services revenue, supported by a growing installed base across major categories. Management expects June quarter revenue growth in the mid-teens, with Services rising at a similar pace after adjusting for foreign exchange.
New products such as iPhone 17e and MacBook Neo, plus Apple Business, can expand ecosystem engagement over time. Apple continues to return cash through dividends and buybacks, which can support the stock when operating results hold up.
At the same time, supply constraints, higher component costs and an uncertain tariff backdrop can weigh on availability and margins. Regulatory and legal actions tied to the App Store and antitrust claims also remain a risk factor, keeping the risk-reward balanced for a Neutral view.
(You can read the full research report on Apple here >>>)
JPMorgan’s shares have gained +20.3% over the past year against the Zacks Financial - Investment Bank industry’s gain of +27.5%. The company remains well-positioned given the current operating backdrop. Its second-quarter 2026 results reflected solid gains in capital markets and investment banking (IB).
JPMorgan’s consumer franchise keeps widening, with U.S. branch builds and Chase digital growth in Europe, while scale, diversified revenues and disciplined balance sheet management aid durable earnings. A higher-for-longer rate regime will aid net interest income (NII), and solid market activity, IB fees and asset management flows will drive fee income.
Yet, mortgage trends remain uneven, and expenses are likely to stay elevated as the company invests in technology, marketing and growth initiatives. Credit quality is a watch item in a tougher, more uncertain macro environment. However, a strong liquidity profile supports enhanced capital returns, with room for selective investments.
(You can read the full research report on JPMorgan here >>>)
Shares of ExxonMobil have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+42.3% vs. +38%). The company has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. In the Permian, XOM’s proprietary technologies are expected to increase well recoveries, while Guyana's fifth FPSO is set to begin operations from late 2026.
The company also has a strong balance sheet, on which it could rely during an unfavorable business environment. ExxonMobil is developing carbon capture and other lower-emission businesses that should diversify its portfolio.
However, the investment case remains closely tied to volatile oil, gas, refining and chemical markets. Middle East disruptions add operating risk, including prolonged outages at Qatar LNG facilities, while Product Solutions results remain uneven. Earnings contribution of lithium and carbon-capture investments remains uncertain.
(You can read the full research report on ExxonMobil here >>>)
Smith-Midland's shares have underperformed the Zacks Building Products - Concrete and Aggregates industry over the past year (-22.2% vs. +11.2%). This microcap company with a market capitalization of $155.16 million has its investment case centered on a shift toward higher-margin, recurring and asset-light revenue streams, supported by infrastructure demand.
Barrier rentals remain a core growth driver, with nine-month rental revenues surging 88% year over year despite Q3 normalization, benefiting from high utilization and margin-accretive MASH-compliant fleets. Proprietary SlenderWall contributed $1.1 million in Q3 after no prior-year sales, soundwalls grew 52% year over year, and Easi-Set modular buildings rose 50% year over year, capturing public and infrastructure projects.
Royalty income increased 13% year over year, providing scalable, high-margin IP monetization. Margins stayed resilient at 26.8% with disciplined cost control. A strong balance sheet supports continued investment. A $54.8-million backlog and government infrastructure tailwinds underpin visibility into 2026 growth.
(You can read the full research report on Smith-Midland here >>>)
Shares of Coffee have underperformed the Zacks Beverages - Soft drinks industry over the past year (-24.9% vs. +18.2%). This microcap company with a market capitalization of $19.92 million offers exposure to specialty coffee demand through a scalable wholesale platform without retail risk, supported by broad sourcing and flexible blending that enhance supply continuity.
Coffee’s diversified model across green, roasted/packed coffee and equipment reduces reliance on any single channel while allowing demand shifts to be absorbed within a shared infrastructure. Growth is increasingly translating into operating leverage, driven by recurring customer activity and expanding private label programs that improve revenue visibility.
The business mitigates commodity volatility through sourcing flexibility and reduced dependence on trading gains, supporting more stable margins. Strengthening liquidity and disciplined capital allocation further enhance resilience and position the company to sustain growth while maintaining financial flexibility.
(You can read the full research report on Coffee here >>>)
Other noteworthy reports we are featuring today include FedEx Corp. (FDX), Ubiquiti Inc. (UI) and The Kraft Heinz Co. (KHC).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Strong iPhone 17 & Services Growth to Aid Apple's (AAPL) Prospects
Featured Reports
FedEx (FDX) Gains From Cost-Cuts & Solid Liquidity Amid Demand Woes
The Zacks analyst weighs FedEx Corporation's cost cuts and solid liquidity against weak demand, tariff risks and soft shipping volumes to assess the stock's investment appeal.
Kraft Heinz (KHC) Benefits From Strategic Pricing Efforts
Per the Zacks analyst, Kraft Heinz is benefiting from pricing action. In the first quarter, pricing rose 0.8 percentage point year-over-year, driven by gains in each reportable segment.
Beverage-Can Demand Aids Crown Holdings (CCK) Amid Cost Pressures
Per the Zacks analyst, Crown Holdings' margins will gain from a global surge in beverage cans demand. However the ongoing raw-material cost pressures remain a headwind.
Healthy Demand & Buyouts Aid Macerich (MAC) Amid Tenant Bankrupticies
Per the Zacks analyst, Macerich gains on healthy tenant demand for premier mall spaces, capital recycling efforts and the expanded credit facility. Yet tenant bankruptcies and e-commerce adoption ail.
Insurance Growth, Inigo Deal and Capital Strength Drive Radian Group
Per the Zacks analyst, Radian's insurance growth, Inigo acquisition and capital strength support long-term growth, while housing affordability issues and pricing competition remain headwinds.
Strategic Investments, Customer Growth Aid American States Water (AWR)
Per the Zacks analyst, American States Water benefits from capital investments aimed at improving infrastructure. Acquisitions and organic growth are expanding the customer base, boosting demand.
Perrigo's (PRGO) Restructuring Helps; Macroeconomic Pressures Hurt
The Zacks analyst is encouraged by Perrigo's restructuring and supply chain initiatives, which are lowering costs and improving margins, but sales remain pressured by inflation and currency headwinds.
New Upgrades
Ubiquiti (UI) Rides on Strong Enterprise Technology Momentum
Per the Zacks analyst, strength in the Enterprise technology segment, backed by rising networking demand and increasing adoption of IoT-connected devices, will likely drive Ubiquiti's top line.
Improving Freight Scenario & Intermodal Growth Aid J.B. Hunt (JBHT)
The Zacks analyst is impressed by the betterment of the freight-related environment. Cost discipline and strong intermodal volumes also bode well.
Masco (MAS) Benefits From Brand Strength & Restructuring Efforts
Per the Zacks analyst, Masco benefits from the strength of its Behr Paint and Delta Faucet brands. Pricing actions, margin expansion initiatives and restructuring support long-term growth.
New Downgrades
Applied Digital Faces Debt and Concentration Risks Despite AI Demand
Per the Zacks analyst, Applied Digital faces headwinds from high debt and customer concentration despite long-duration leases and secular AI infrastructure demand.
Fierce Rivalry & Forex Woes Ail Align Technology's (ALGN) Growth
The Zacks analyst is worried about the ongoing entry of new players, which may dent Align Technology's strong Invisalign sales globally. Unfavorable currency movements is an added headwind.
Weakness in Process Automation Unit Hurts Honeywell (HON)
Per the Zacks analyst, Honeywell is experiencing softness in the Process Automation and Technology unit, due to lower refining catalyst shipments and project delays. Forex woes are an added concern.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Stock Reports for Apple, JPMorgan & ExxonMobil

FedEx Corporation FDX, a leading parcel delivery company with a market capitalization of around $75 billion, has seen its shares jump more than 10% so far this year. Improved operational efficiency driven by prudent cost-cutting measures has buoyed the company’s shares. Strong cash flows, a disciplined approach to capital expenditure and resilience in demand in the U.S. domestic package network, despite global uncertainties, have been boosting the company's prospects.
Despite the double-digit gain (% wise) year to date, the stock has marginally underperformed the Zacks Transportation—Air Freight and Cargo industry and rival United Parcel Service UPS. FDX has, however, outperformed fellow industry player GXO Logistics GXO.
YTD Price Comparison
Given the stock’s double-digit price gain on the back of the company’s ongoing cost-cutting initiatives aimed at boosting bottom-line growth, investors may be questioning whether it is a buy at present. Let’s take a closer look to address this question.
FDX Performs Well in Q4 FY26 & Gives Bullish Outlook
In the fourth quarter of fiscal 2026, results of which were released last month, FedEx’s earnings (excluding 29 cents from non-recurring items) of $6.31 per share beat the Zacks Consensus Estimate of $5.91 as well as improved 3.9% year over year. The company’s bottom line benefited from share repurchase activity.
Revenues of $25 billion came ahead of the Zacks Consensus Estimate of $24.1 billion and improved 12.5% from the year-ago quarter. In the quarter, the majority of the revenue growth was driven by business-to-business (“B2B”) services and the three-month period was the brightest quarter within fiscal year 2026 from a B2B perspective. This is in line with the company’s continuous efforts to move away from low-margin parcel traffic.
To bolster margins, FedEx is shifting its focus toward high-margin B2B segments — specifically healthcare, aerospace, automotive and data centers. In Europe, the company achieved its 12th consecutive quarter of international revenue share gains, driven by the strong value proposition and improving service levels.
Apart from focusing on AI tools to improve efficiency and customer experience, the transportation giant is keeping CapEx low to boost profitability. As part of its cost discipline, the company aims to achieve a CapEx of $3.9 billion in calendar year 2026. We note that the company has changed its fiscal year-end from May 31 to Dec. 31. The fiscal year change became effective for the period beginning June 1, 2026.
For the calendar year 2026, FedEx anticipates revenue growth of approximately 11%, including about 3 percentage points of assumed fuel price-driven surcharge benefit. The outlook is likely to be supported by continued momentum within base pricing and increased demand for premium B2B and high-value B2C services. This translates to an adjusted EPS range of $16.90 to $18.10. Robust free cash flow is expected to be generated in the period, with the company intending to repurchase up to $1 billion worth of shares. The company expects to generate cost savings worth $2 billion by the end of calendar 2027.
Driven by the cost-cutting initiatives and the impressive outlook, the consensus price target for FDX stock is $357.58, implying an upside of more than 14% from current levels.
Near-Term Headwinds Persist
No doubt, FedEx is seeing consistent improvement, largely supported by efficiencies driven by artificial intelligence, but its near-term outlook remains somewhat uneven. Rising fuel prices, regulatory shifts and wider macroeconomic challenges continue to act as significant obstacles.
With the United States and Iran once again exchanging fire, the already fragile ceasefire is under renewed strain. The uptick in oil prices, following the renewed hostilities, is putting pressure on transportation companies like FedEx.
Since fuel is a major cost component for such businesses, higher prices directly impact profitability. The disruption of the Strait of Hormuz — an essential oil transit route under Iran’s control — has further intensified the situation. Nearly 20% of the world’s traded oil moves through this passage and the disturbance has pushed diesel and jet fuel costs higher, raising expenses across FedEx’s global delivery operations. Moreover, the increase in hostilities in the Ukraine-Russia conflict has accentuated the uncertain global scenario.
In addition, evolving global trade policies are weighing on FedEx’s short-term outlook. The United States has eliminated the “de minimis” exemption for low-value shipments, leading to higher international shipping costs. FedEx now encounters increased brokerage expenses and operational challenges as it must handle formal customs procedures for shipments that were previously exempt from duties. These factors are likely to weigh on margins in the near term, even as FDX works to offset some of the impact through pricing and cost controls.
Valuation Check
FDX stock is trading at 0.78X forward sales, lower than the industry. Its closest peer, United Parcel Service, has a P/S ratio of 1.08. Meanwhile, GXO Logistics is trading at a forward sales multiple of 0.43. FedEx has a Value Score of B, like United Parcel Service and GXO Logistics
FDX Shares Don’t Appear to be Pricey
Our Take: Hold for Now
FDX’s long-term outlook is becoming increasingly favorable, supported by its emphasis on higher-margin B2B segments, which enhances earnings visibility and margin expansion potential. The company’s commitment to strengthening its bottom line through cost-reduction initiatives is particularly encouraging and could become an increasingly important driver of the long-term investment thesis.
That said, the near-term outlook remains somewhat mixed. Elevated fuel costs, challenges stemming from the removal of the de minimis exemption and broader external uncertainties may continue to weigh on earnings momentum over the next few quarters. Currently, the risk-reward profile does not appear attractive enough to justify a new investment. We believe the stock remains worth holding for investors with a long-term horizon. Potential investors may prefer to wait for a more attractive entry point.
FedEx currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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FedEx Lags Industry YTD: How Should Investors Play the Stock?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI USA Momentum Factor ETF (Symbol: MTUM) where we have detected an approximate $188.8 million dollar outflow -- that's a 0.7% decrease week over week (from 85,600,000 to 85,000,000). Among the largest underlying components of MTUM, in trading today Welltower Inc (Symbol: WELL) is up about 0.7%, Teradyne, Inc. (Symbol: TER) is up about 3.4%, and FedEx Corp (Symbol: FDX) is lower by about 0.3%. For a complete list of holdings, visit the MTUM Holdings page » The chart below shows the one year price performance of MTUM, versus its 200 day moving average:
Looking at the chart above, MTUM's low point in its 52 week range is $229.42 per share, with $345.59 as the 52 week high point — that compares with a last trade of $319.80. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further MTUM Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

MTUM, WELL, TER, FDX: ETF Outflow Alert

Key Points
FedEx currently looks stronger on revenue, showing consistent top-line expansion compared to the more volatile performance seen from United Parcel Service.
Over the last eight quarters, United Parcel Service experienced distinct quarter-over-quarter swings, while FedEx maintained a much steadier upward trajectory during the same timeframe.
Investors should watch whether the revenue gap between the two companies continues to widen or if it stabilizes in upcoming quarters.
United Parcel Service: Navigating Revenue Fluctuations
United Parcel Service (NYSE:UPS) primarily generates revenue by offering time-definite package delivery, international logistics, and specialized supply chain services to clients worldwide.
In the first half of 2026, it announced plans to close additional distribution centers while reporting a 4% net income margin for the quarter ended March 31, 2026.
FedEx: Building Steady Revenue Growth
FedEx (NYSE:FDX) primarily earns revenue by providing rapid package shipping, heavy cargo transport, and integrated supply chain management services across international borders.
It finalized the spin-off of its freight business into an independent public company in June 2026, and reported a 6% net income margin for the quarter ended May 31, 2026.
Why Revenue Matters for Retail Investors
Revenue allows investors to see how much money a business is bringing in before any expenses are deducted. Tracking this figure helps investors understand the total scale and top-line growth trajectory of a business.
Quarterly Revenue for United Parcel Service and FedEx
Q3 2024
$22.2 billion (period ended Sept. 2024)
$21.6 billion (period ended Aug. 2024)
Q4 2024
$25.2 billion (period ended Dec. 2024)
$22.0 billion (period ended Nov. 2024)
Q1 2025
$21.5 billion (period ended March 2025)
$22.2 billion (period ended Feb. 2025)
Q2 2025
$21.2 billion (period ended June 2025)
$22.2 billion (period ended May 2025)
Q3 2025
$21.4 billion (period ended Sept. 2025)
$22.2 billion (period ended Aug. 2025)
Q4 2025
$24.5 billion (period ended Dec. 2025)
$23.5 billion (period ended Nov. 2025)
Q1 2026
$21.2 billion (period ended March 2026)
$24.0 billion (period ended Feb. 2026)
Q2 2026
Not yet reported
$25.0 billion (period ended May 2026)
Data source: Company filings. Data as of July 7, 2026.
Foolish Take
Examining the revenue trends for UPS and FedEx reveal different stories about their businesses. UPS experiences a spike in the fourth quarter because one of its biggest customers historically has been Amazon, and the holiday season produces more sales for the e-commerce giant.
That has changed with UPS slashing its business with Amazon because, while the partnership contributes a lot of revenue, the margins are slim. UPS has intentionally shed this low-margin volume to improve its operating profit margins, leading to bumpy quarterly revenue and year-over-year declines. UPS is also predominantly unionized, and these higher costs compared to FedEx’s non-union workforce mean the company must pursue margin protection over revenue growth.
FedEx aggressively prioritizes volume growth, enabling its sales to expand year over year. Its recent spinoff of its freight division should help this further as well. For its 2026 fiscal year ended May 31, the company’s $94.7 billion was a strong increase over the prior year’s $87.9 billion. FedEx expects about 11% year-over-year growth in its next fiscal year, which the company shifted into a calendar year starting in June of this year.
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Robert Izquierdo has positions in Amazon, FedEx, and United Parcel Service. The Motley Fool has positions in and recommends Amazon and United Parcel Service. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

United Parcel Service vs. FedEx: What Their Revenue Trends Tell Investors

Key Points
Past performance is no guarantee of future results, but it is a pretty good indication of what the future likely holds.
Although the market Realty Income is focused on is seemingly struggling, there’s a reason the company isn’t.
Regardless, this REIT is exploring opportunities outside of what has traditionally been its core business.
Finding good dividend stocks isn't too tall a task. Finding dividend stocks you can feel good about buying and holding forever, however, is a different story. The world is constantly changing. Companies that are firing on all cylinders today may be irrelevant tomorrow.
But there are some businesses that are just built to last, and to pay a reliable dividend as long as they do. Realty Income (NYSE: O) is one of those businesses.
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Built tough
It's not exactly a household name, although it's likely that you or someone in your household regularly steps into one of its properties. Realty Income is a real estate investment trust (REIT), and as such, it owns a portfolio of commercial real estate that it rents to other companies. Realty Income's specialty is brick-and-mortar retailing.
At first blush, this seems risky. The so-called retail apocalypse is still underway, after all. Realty Income is largely defying it, though. With top-20 tenants like Dollar General, FedEx, Home Depot, and Walmart, this REIT is reliably able to maintain occupancy rates in excess of 98%. Even during pandemic-riddled 2020, its full-year occupancy only slipped to 97.9%.
This resiliency is translating into ultra-reliable monthly dividends and dividend growth for shareholders. Not only has the company paid a monthly dividend like clockwork since its founding in 1969, but it has also raised its per-share payout every quarter since 1998.
And by more than a little. Over the past 10 years, its monthly payment has improved from $0.2115 per share to $0.2710. This dividend growth paired with the stock's capital appreciation has produced a compound average annual return of 13.6% since Realty Income was listed on the New York Stock Exchange in 1994.
Willing and able to adapt, too
It's possible that the traditional brick-and-mortar retailing sector could continue deteriorating under the weight of e-commerce's proliferation, to the point where even rock-solid Realty Income starts to struggle. Meanwhile, higher interest rates are a temporary headwind.
But while that's possible, it's not likely. There's plenty of consumer-facing retailing that will never quite work online, and to the extent online shopping poses a threat to the business, many of Realty Income's tenants like Walmart also have e-commerce operations to go with their brick-and-mortar segments. Or they are businesses like FedEx that benefit from online shopping's continued growth.
Even so, concerned investors should know that Realty Income's management is testing the waters of other markets, including artificial intelligence (AI) infrastructure by partnering with AI data center owner/operator Digital Realty on new facilities. While this isn't a significant business yet, Realty Income's willingness to entertain obvious opportunities is encouraging.
Even more encouraging is that Realty Income doesn't need to rush into these new markets. It can take its time, since its well-established retailing portfolio remains a reliable cash cow. This sort of well-managed flexibility ultimately translates into longevity.
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James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Digital Realty Trust, Home Depot, Realty Income, and Walmart. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Want a Lifetime of Passive Income? Buy Realty Income Stock in July and Never Sell.

FedEx FDX is reshaping its cost structure through the company-wide DRIVE initiative to better align operations with post-pandemic market conditions. The program delivered $1.8 billion in recurring savings in fiscal 2024 and another $2.2 billion in fiscal 2025.
In addition, FedEx is improving efficiency through network transformation initiatives such as Network 2.0, Tricolor and its European optimization efforts. These initiatives have enabled the company to surpass its fiscal 2026 transformation-related savings target of $1 billion. At the same time, investments in data and technology are helping FedEx enhance customer experience, secure new business and unlock additional value.
However, geopolitical tensions and persistent inflation continue to pressure consumer sentiment and economic growth, resulting in softer shipping demand. To counter these headwinds, FedEx has stepped up cost-reduction efforts by cutting flight frequencies, parking aircraft and reducing its workforce. These initiatives contributed to better-than-expected earnings and revenues in the fourth quarter of fiscal 2026.
Rival United Parcel Service UPS is also pursuing aggressive cost-cutting measures to navigate the weak demand environment. The company has eliminated multiple operational positions and closed several facilities as it restructures the network and focuses on higher-margin business opportunities.
A key part of UPS' strategy is reducing its dependence on Amazon AMZN. In 2025, UPS reached an agreement in principle with Amazon to reduce shipment volumes by more than 50% by June 2026. CEO Carol Tomé noted that Amazon was not UPS' most profitable customer and the planned volume reduction is allowing it to right-size the network while prioritizing more profitable business.
FDX’s Price Performance, Valuation & Earnings Surprise History
Shares of FDX have gained in single digits (% wise) in the past six months, outperforming its industry.
6-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, FDX trades at a 12-month forward price-to-sales ratio of 0.77X, making it cheap compared with industrial levels.
Image Source: Zacks Investment Research
The company has an impressive earnings surprise history, as shown below.
Image Source: Zacks Investment Research
FDX’s Zacks Rank
FDX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

FDX Banking on Cost Cuts Amid Top-Line Woes: What Lies Ahead?

For Immediate Release
Chicago, IL – June 29, 2026 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes JPMorgan JPM, Micron Technologies MU, FedEx FDX, Nike NKE, Constellation Brands STZ.
What Will Q2 Earnings Season Show?
Total S&P 500 earnings are expected to increase by +23.7% in the June quarter from the same period last year, on +11.4% higher revenues.
The revisions trend remains positive, as we have experienced in the last two quarters as well. Aggregate earnings estimates for the S&P 500 index have steadily moved higher since the quarter got underway in April.
Q2 earnings estimates have increased for 5 of the 16 Zacks sectors since the quarter got underway, which offset negative revisions at the remaining 11 sectors.
The Energy sector has enjoyed the most obvious earnings outlook upgrade, with aggregate earnings estimates for the sector up more than +90% since the start of April. Earnings for the Zacks Energy sector are currently expected to increase by +126.9% from the year-earlier period. Other sectors enjoying favorable estimate revisions include Tech, Basic Materials, Utilities and Business Services.
Excluding the positive revisions to either the Energy or Tech sectors, the aggregate Q2 revisions trend would have been negative.
Of the 11 sectors whose estimates have been under pressure since the start of April, the ones experiencing the most negative revisions are Transportation, Medical, Consumer Discretionary, Autos and Construction.
The revisions trend for full-year 2026 is even more positive than we noted in the case of Q2, with estimates for 11 of the 16 Zacks sectors going up since the start of March. The Energy, Tech and Basic Materials sectors are the most notable beneficiaries of an improving earnings outlook, but estimates have increased across the board.
The sectors that have suffered negative estimate revisions since the start of March are Transportation, Autos, Consumer Discretionary, Consumer Staples and Medical.
2026 Q2 Earnings Season Scorecard
The Q2 earnings season will really get going when JPMorgan and other major banks come out with their quarterly results on July 14th. But officially, the Q2 reporting cycle has already started, as companies with fiscal quarters ending in May have been reporting quarterly results in recent days, and those fiscal May-quarter reports get counted as part of the June-quarter tally.
Through Friday, June 26th, we have seen such fiscal May-quarter results from 13 S&P 500 members, including bellwether companies like Micron Technologies, FedEx and others. We have another four S&P 500 companies with fiscal quarters ending in May on deck to report results this week, including Nike, Constellation Brands and others.
Total earnings for these 13 companies are up +179.5% from the same period last year on +29.5% higher revenues, with 84.6% beating EPS estimates and 69.2% beating revenue estimates.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>> 2026 Q2 Earnings Season Preview: What to Expect
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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