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Memphis, Tennessee-based FedEx Corporation (FDX) provides transportation, e-commerce, and business services. Valued at $55 billion by market cap, the company offers worldwide express and freight delivery, ground small-parcels, less-than-truckload, supply chain management, customs brokerage services, trade facilitation, and electronic commerce solutions.
Shares of this logistics giant have underperformed the broader market over the past year. FDX has declined 21.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 14.3%. In 2025, FDX’s stock fell 19.2%, compared to the SPX’s 8.7% rise on a YTD basis.
Narrowing the focus, FDX’s underperformance is also apparent compared to the Pacer Industrials and Logistics ETF (SHPP). The exchange-traded fund has gained about 4.5% over the past year. Moreover, the ETF’s 6.3% returns on a YTD basis outshine the stock’s double-digit losses over the same time frame.
FedEx is underperforming due to weak package volumes, driven by geopolitical uncertainty, tariff issues, and high inflation, which are negatively impacting consumer sentiment and growth expectations. As a result, the company is focusing on cost-cutting measures.
On Jun. 24, FDX reported its Q4 results, and its shares closed down more than 3% in the following trading session. Its adjusted EPS of $6.07 beat Wall Street expectations of $5.93. The company’s revenue was $22.2 billion, beating Wall Street forecasts of $21.7 billion. For Q1 2026, FDX expects its adjusted EPS to range from $3.40 to $4.
For fiscal 2026, ending in May 2026, analysts expect FDX’s EPS to grow 1.7% to $18.49 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the 30 analysts covering FDX stock, the consensus is a “Moderate Buy.” That’s based on 18 “Strong Buy” ratings, one “Moderate Buy,” nine “Holds,” and two “Strong Sells.”
The configuration has been consistent over the past three months.
On Aug. 18, Citigroup Inc. (C) kept a “Buy” rating on FDX and lowered the price target to $275, implying a potential upside of 21% from current levels.
The mean price target of $264.85 represents a 16.6% premium to FDX’s current price levels. The Street-high price target of $320 suggests an ambitious upside potential of 40.8%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
