A rotation out of tech names and into industrials has shares of FedEx (FDX +1.47%) flying this week. As of midday Friday, the stock of the transportation services company surged 13.3%, according to data from S&P Global Market Intelligence.
FedEx shares have now jumped by more than 26% so far this year. That's about double the return of the Dow Jones Transportation Index year to date.
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Analyst sees plenty of upside
This week's move came as investors shifted away from high-flying tech stocks and into more industrial names. But that wasn't the only reason FedEx shares have soared. Earlier in the week, UBS analyst Thomas Wadewitz maintained a "buy" rating on the stock and significantly boosted his firm's price target.
Wadewitz increased his target from $314 to $412 per share, according to reports. That's more than a 30% boost. His new target price still implies another 12% upside from Thursday's closing price.
NYSE: FDX
Key Data Points
FedEx is holding its 2026 Investor Day next week on Feb. 12. The transportation and delivery company should present investors with a multi-year plan that could include a path to higher margins. The analyst believes cost reductions, improved pricing, and more sustainable revenue growth will be presented.
That scenario could leave the stock with much more upside, and investors are trying to get ahead of it this week.
