In this article let’s take a look at FedEx Corporation (FDX), the leader in global express delivery services that provides guaranteed domestic and international air express, residential and business ground package delivery, heavy freight and logistics services.
FedEx has survived various economic cycles and oil supply crises. Although short-term results were hurt, the firm continues to be a candidate for your portfolio.
The company continues to grab growth opportunities internationally. The firm keeps pace with rapid rate of expansion of Indian economy. Other investments across China, Mexico and Brazil will improve its competitive position. For example, FedEx Express has opened a new North Pacific Regional Hub in Japan and a new national hub in Mexico, with an investment of $48 million. The new hub in Mexico will perform domestic operations and reduce transit times, enhance pickup services and foster efficient deliveries throughout the country.
We believe the firm could exploit its competitive advantages in the future, despite the challenges of fuel price shocks and global economic cycles.
— Guru Focus