FedEx Corporation (NYSE:FDX) provides transportation, e-commerce, and business services in the United States and internationally. The company’s FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; time-critical transportation services; and cross-border e-commerce technology and e-commerce transportation solutions. Its FedEx Ground segment provides day-certain delivery services to businesses and residences. The company’s FedEx Freight segment offers less-than-truckload freight transportation services. As of May 31, 2021, this segment had approximately 29,000 vehicles and 400 service centers. Its FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection, and back-office function services. The company’s Corporate, Other and Eliminations segment offers integrated supply chain management solutions, specialty transportation, customs brokerage, and global ocean and air freight forwarding services; and an array of document and business services, and retail access to its customers for its package transportation businesses. The company was founded in 1971 and is based in Memphis, Tennessee.
While many consumers only rely on this shipping service occasionally, the bottom line is that writing a check to FedEx for shipping services is a daily occurrence for many businesses if they want to compete in the current retail environment.
- Market value: $56.5 billion
- Dividend yield: 1.4%
- Forward P/E ratio: 11.7
- Analysts’ ratings: 8 Strong Buy, 13 Buy, 7 Hold, 0 Sell, 0 Strong Sell
- Analysts’ consensus recommendation: 2.00 (Buy)
With nearly $100 billion in annual revenue and a run rate of about 3 billion packages delivered last fiscal year, FedEx is an integral part of the global economy. That makes it one of the best value stocks to own in 2022.
FDX is predicted to tally $20.37 in earnings per share this year for a more than double-digit growth rate. Furthermore, EPS are set to jump another 11% or so in the next fiscal year, too. Throw in a $1.5 billion accelerated stock buyback plan to provide tailwind for share prices and there’s a lot to like about this dominant delivery company in 2022.
Therefore, FDX is the best value logistics related stock to own for long term investor.