FedEx Corporation (NYSE:FDX) is one of the stocks Jim Cramer discussed after the Fed rate cut. Cramer showed bullish sentiment toward the company’s quarter, as he said, “I, by the way, reiterate that this could be the breakout quarter for Federal Express, FedEx.”
Fedex-Ground-FDX-obi-onyeador-8LCZb66I4wg-unsplash.jpg
FedEx Corporation (NYSE:FDX) provides transportation, shipping, and logistics services, including express and freight delivery, e-commerce solutions, and supply chain management. Ariel Investments stated the following regarding FedEx Corporation (NYSE:FDX) in its third quarter 2025 investor letter:
“We addedFedEx Corporation (NYSE:FDX), a global leader in package delivery, operating in a stable, competitive market alongside UPS. Despite macro uncertainty, under new leadership the company has made progress improving margins through cost efficiencies. A major catalyst is the planned spin-off of FedEx Freight (LTL) by June 2026, which could unlock significant value given LTL peers trade at much higher valuations. This move also will allow FedEx to sharpen its focus on the core delivery business, where margin improvements could help close the gap with UPS. Additional catalysts include the upcoming anniversary of the United States Postal Service contract termination in October 2025, clarity on tariffs, and a potential cyclical recovery. While risks such as economic slowdown and tariff impacts remain, we think FedEx offers upside through operational improvements, portfolio simplification, and the potential for a re-rating as investor confidence builds.”
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: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
