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.
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