Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, express delivery giant FedEx
With that in mind, let's take a closer look at FedEx's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Memphis, Tenn. (1971)|
|Market Cap||$29.2 billion|
|Industry||Air freight and logistics|
|Trailing-12-Month Revenue||$38.18 billion|
|Management||Founder/Chairman/CEO Frederick Smith
CFO Alan Graf Jr.
|Return on Equity (average, past 3 years)||4.4%|
|Cash/Debt||$1.36 billion / $1.68 billion|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 90.5% of the 2,266 members who have rated FedEx believe the stock will outperform the S&P 500 going forward. These bulls include WasInIt4me and All-Star Staka, who is ranked in the top 2% of our community.
Late last month, WasInIt4me touched on the big trend working in FedEx's favor: "Online shopping keeps growing! Got to get it anywhere in the world attitude. Small packages or Large Manufactured products not a problem. This is a Co. that's doing it right."
Currently, FedEx even sports a cheapish price-to-cash flow of 7.9. That represents a discount to main rival UPS (19.2), as well as other logistics stocks such as C.H. Robinson
CAPS All-Star Staka weighs FedEx's pros and cons:
- Profits from a long-standing trend toward growing online purchases. Is far from beeing over.
- Second largest in the sector (after UPS), aggressive international expansion.
- Clean balance sheet.
- Q4 as expected, positive guidance.
- Some big insider sales more recently.
- Slow growth in the past 5 years.
- Leveraged to economic growth, if it stalls the stock might get punished.
What do you think about FedEx, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. FedEx is a Motley Fool Stock Advisor recommendation. The Fool owns shares of FedEx and UPS. Try any of our Foolish newsletter services free for 30 days.
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