Citi Cites FedEx's (FDX) Cost Cuts and Freight Spin-Off to Support Buy Rating
However, Citi analyst Ariel Rosa remains constructive on the name. Rosa, in a note dated June 18, reiterated a Buy rating on the stock, with an unchanged $267 price target. She highlighted a series of strategic changes intended to strengthen its long-term position, which serves as the basis for her optimistic view. Her rating also reflects confidence in FedEx's ability to improve efficiency and earnings despite near-term challenges.
pio3 / Shutterstock.com
The company is moving forward with its Network 2.0 plan, integrating its Express and Ground units to streamline operations. It is also preparing to spin off its Freight business, a move seen as unlocking more focused growth potential and value from this business.
In addition, FedEx continues to benefit from its DRIVE cost-cutting program, which has already delivered notable savings and is expected to support margin improvement over time. While the demand backdrop remains uncertain, especially with global trade slowing, Rosa believes FedEx's restructuring efforts and leadership changes could pay off in the longer term.
FedEx Corp. delivers packages and freight to multiple countries and territories through an integrated global network. The Company provides worldwide express and freight delivery, ground small-parcels, less-than-truckload, supply chain management, customs brokerage services, trade facilitation, and electronic commerce solutions.
While we acknowledge the potential of FDX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and .
Disclosure: None.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
22 minutes ago
- Yahoo
Bitcoin Profit Taking Accelerates as BTC Realized Gain Jumps to $2.4B
The profit-taking activity on the Bitcoin network intensified on Monday, keeping bitcoin's (BTC) spot price under pressure on the final day of the second quarter. The total amount of realized profits on-chain rose to $2.4 billion, with its seven-day average climbing to $1.52 billion, the highest since the second half of May, according to data tracked by blockchain analytics firm Glassnode. "That's above the YTD average of $1.14 billion, but still well below the ~$4 billion-$5 billion peaks (7D SMA) seen in Nov–Dec 2024," Glassnode said on X. The realized profit metric represents the total USD value of all coins moved on-chain whose price at their latest movement was higher than the price at their previous spot price fell by 1% to $107,180 on Monday. Prices have steadied in the range of $100,000 to $110,000 since mid-May, with wallets known to hold coins for the long-term liquidating their holdings amid continued inflows into the U.S.-listed spot bitcoin exchange-traded funds (ETFs).Sign in to access your portfolio
Yahoo
23 minutes ago
- Yahoo
Are Kroger, Aldi, Giant Eagle open on July Fourth? Are Costco, Target closed? What to know
Guess what? It's almost time for the red, white and blue holiday. The Fourth of July, or Independence Day, is this Friday, July 4. That means it's time for cookouts, bonfires, and fireworks while surrounded by friends and family. When is Independence Day? Is July Fourth a federal holiday? Will the mail come? Is the stock market open? What about Kroger, Giant Eagle and Aldi? Do you get a day off work? Will your garbage be picked up? Here's what to know. Independence Day falls on the same day every year, July 4. This year, July Fourth lands on a Friday. Independence Day is listed as one of 11 federal U.S. holidays, according to the U.S. Office of Personnel Management. Most federal workers and private sector workers are entitled to paid holiday time off. The New York Stock Exchange, Nasdaq, and bond markets will close early the day before Independence Day and will be closed on the Fourth of July. Those markets are typically open Monday through Friday, aside from select holidays. According to U.S. News and World Report, banks and their branches will be closed on Independence Day. Bank ATMs and digital banking features will still be in service. Mail is not delivered on federal holidays, so you will not receive your regular mail or packages on Independence Day. USPS Priority Mail is the only service in operation. Other delivery services, such as FedEx and UPS, will not operate on July Fourth. However, critical deliveries will still be in service. There's a good chance you won't have trash pickupbecause of the holiday. Ohio's bigger cities won't see garbage trucks on Independence Day. Cincinnati, Columbus, Akron, and Canton will not have trash pickup and garbage service will be delayed by one day. Check your local provider to see how your garbage pickup might be affected. Aldi is open on Independence Day but with limited hours, according to the chain's website. Giant Eagle is open from 7 a.m.–9 p.m. on July Fourth, a company representative confirmed. Have last-minute groceries to grab for a holiday cookout? Most Kroger locations are expected to have regular hours, according to Parade, but contact your preferred location to check hours before shopping. Costco warehouses will be closed on Independence Day, according to the company's Club will be open from 8 a.m. to 6 p.m. for Plus members and 10 a.m. to 6 p.m. for Club members on Independence Day, according to the company's website. Walmart stores will maintain regular hours on Independence Day, as confirmed by customer service via a phone call. Target stores will have regular hours on Independence Day, customer service confirmed. The next holiday that most U.S. workers will have a day off is Labor Day, which falls on Monday, September 1, 2025. Some people may also receive a day off for Columbus Day, a holiday that falls on October 13 in 2025. This article originally appeared on The Columbus Dispatch: July Fourth 2025: What's open, closed in Ohio? Aldi, Costco, Kroger hours
Business Insider
30 minutes ago
- Business Insider
Citi raises quarterly dividend to 60c per share from 56c
Citi (C) announced that it has completed the Federal Reserve Board's 2025 annual supervisory stress test process. Citi's indicative Stress Capital Buffer requirement is 3.6%, down from the current 4.1%, and Citi's preliminary Standardized Common Equity Tier 1 capital ratio regulatory requirement will be 11.6%, down from the current 12.1%. As of March 31, 2025, Citi's Standardized CET1 capital ratio stood at 13.4%, which was 130 basis points above the regulatory requirement of 12.1%, and included a 100 basis point internal management buffer. The Federal Reserve Board will provide the Firm with its final SCB requirement later this quarter. Citi's planned capital actions include an increase of Citi's quarterly common stock dividend from 56c to 60c per share, subject to quarterly approval by Citi's Board of Directors, starting in the third quarter of 2025. As previously announced, Citi commenced a $20B multi-year share repurchase program in January 2025, of which $3.75B has been repurchased year-to-date. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
