Shipping giants FedEx Corp (NYSE:FDX) and United Parcel Service, Inc.(NYSE:UPS) shares are trading lower Friday after FedEx reported worse-than-expected quarterly results and cut its fiscal-year guidance on Thursday.
The Details:
FedEx reported first-quarter revenue and earnings below analyst expectations following Thursday's closing bell. The company said its operating results fell during the "challenging quarter" due to lower U.S. domestic priority package volume and increased wage and purchased transportation rates.
Additionally, FedEx revised its full-year outlook lower with full-year 2025 revenue now expected to grow in the low single-digit range.
Morgan Stanley analyst Ravi Shanker downgraded FedEx stock from Equal-Weight to Underweight and lowered the price target from $215 to $200 following the print. Baird maintained its Outperform rating, but lowered the price target from $340 to $320.
Shipping-peer UPS's shares are moving lower Friday in sympathy with FedEx following the company's disappointing quarterly report and soft guidance. UPS will report its third-quarter results at the end of October.
Will FDX Stock Go Up?
When trying to assess whether or not FedEx will trade higher from current levels, it's a good idea to take a look at analyst forecasts.
Wall Street analysts have an average 12-month price target of $318.26 on FedEx. The Street high target is currently at $359 and the Street low target is $200. Of all the analysts covering FedEx, 16 have positive ratings, 2 have neutral ratings and one has a negative ratins.
In the last month, 6 analysts have adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering FedEx have performed in recent history.
Stocks don't move in a straight line. The average stock market return is approximately 10% per year. FedEx is 19.09% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.
For a broad overview of everything you need to know about FedEx, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.
FDX, UPS Price Action: According to Benzinga Pro, FedEx shares are down 13.2% at $260.92 and United Parcel Service shares are down 2.67% at $128.60 at the time of publication Friday.
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