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How FedEx’s Stock Performed in Expectation of the Holiday Season

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FedEx’s stock performance

In the last three months of the year, marking the peak holiday season, FedEx’s (FDX) stock has declined by 4.5%. This might be due to FDX’s 1Q16 results, which were slightly below analyst expectations and the heavy investments that dragged down performance.

However, FedEx’s larger rival UPS remained flat in the same period, while smaller rival Air Transport Services (ATSG) gained 3.5%. Other logistic providers, however, realized losses. C.H. Robinson Worldwide (CHRW) lost 10% and Expeditors International (EXPD) lost 5%.

The iShares Transportation Average ETF (IYT), which tracks the transportation sector, lost ~7%. Tracking the broader market, the SPDR S&P 500 ETF Trust (SPY) gained ~3%.

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Analyst recommendations

Analysts have a consensus 12-month target price of $182.95 for FedEx, which indicates ~27% return potential.

Out of the 28 analysts tracking the stock, the breakdown of their recommendations follow:

  • 60.7% (or 17) of the analysts have a “buy” rating on the stock.
  • 39.3% (or 11) analysts have a “hold” rating on the stock.
  • None of the analysts have a “sell” rating on the stock.

FedEx forms the largest holding of 13.14% in the iShares Transportation Average ETF (IYT).

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