Everything You Need To Know About FedEx Stock

Everything You Need To Know About FedEx Stock

The global delivery services industry has emerged as one of the most essential sectors connecting consumers and businesses both big and small. The FedEx Company, founded in 1971, has gradually become one of the biggest players in the market today. 

FedEx operates through a network of subsidiaries, providing delivery, freight, and e-commerce services to corporate and individual customers. 

FedEx’s core business is package delivery and the company offers its services in more than 200 countries worldwide. 

The global delivery industry is growing, and FedEx has proven to be one of the top players to invest in and gain exposure to this growth. 

FedEx reached its all-time high during the Covid-19 pandemic when hundreds of millions of people around the world were subject to lockdown measures and resorted to online shopping to fulfill their needs. After the market correction that happened in 2022, coupled with global supply chain issues and inflation, FedEx stock fell to pre-pandemic levels but has since regained upwards momentum. 

Investors may be wondering how long FedEx’s current bull run will continue and whether it is the right time to invest in FedEx stock. If you are such an investor - this investfox guide to FedEx stock is for you. 

10 Interesting Facts To Know About FedEx Stock

  • FedEx is listed on the New York Stock Exchange under the FDX ticker symbol
  • The company went public in 1978 at $24/share 
  • FedEx is a component of the S&P 500 - the benchmark index of the United States stock market 
  • FedEx has been a dividend-paying stock since 2002 - steadily increasing its payout year after year 
  • In addition to common stock, FedEx has issued several classes of preferred stock, which offer higher dividend yields but a lower potential for capital appreciation
  • FedEx stock is often regarded as a bellwether of the global economy, as its performance is directly related to international trade and consumer spending 
  • As of April 27, 2023, FedEx had a market capitalization of over $56 billion 
  • The annual dividend yield for the same date was 2.26% or $1.26 per share 
  • FedEx frequently buys back its shares - increasing value for existing shareholders
  • Some of the largest institutional investors in FedEx stock include BlackRock, Vanguard Group, and State Street Corporation

FedEx Stock & Financial Performance

FedEx stock has had a wild ride during the Covid-19 pandemic. As lockdown measures were enforced around the globe, consumers drastically increased their online spending, which boosted demand for FedEx’s services. This sudden increase in demand boosted the stock from as low as $90 during the initial stages of the pandemic, to as high as $342 at its peak in 2021. 

However, as lockdown measures were lifted and consumer spending normalized, the company was faced with a drastically different reality - high inflation and ongoing supply chain constraints, which greatly affected the company’s bottom line and returned the stock to a more modest valuation. 

The stock dropped from its $300+ highs to as low as $150 per share, losing half of its market value in the process. However, FedEx stock has since marked a turnaround, reaching over $200 by the start of 2023. 

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In terms of financial performance, FedEx’s latest quarterly earnings report highlights the operational difficulties faced by the company throughout 2022:

  • Revenues of $22.17 billion - down 6.23% YoY
  • Net earnings down by 30.67% to $771 million 
  • Net profit margin down by 25.96% to 3.48%

A negative highlight of the earnings report was the razor-thin profit margin. FedEx already operates in an industry with notoriously low profit margins, and an over 25% reduction could hurt the company’s ability to increase its annual dividend, which currently stands at $1.26 per share, which amounts to an annual yield of 2.25% - an attractive option for income-oriented investors.

Pros & Cons Of Investing In FedEx Stock

Before investing in FedEx, it is crucial to consider the advantages and disadvantages associated with doing so, as well as the potential challenges and opportunities that lie ahead for the company. 


  • Strong brand recognition - FedEx is a globally recognized brand with a robust lineup of partner businesses, which gives it an advantage over many competitors
  • Diverse business- FedEx’s revenue streams include transportation, logistics, and e-commerce, which reduces the concentration of operational risks
  • Global presence - FedEx has a significant global presence, operating in over 200 countries around the world, which gives the company more room for growth
  • Dividends - FedEx has a healthy annual dividend yield at 2.25%, which is attractive for dividend investors
  • Technological innovation - FedEx has invested heavily in technology, including automation and robotics, to improve efficiency and reduce costs


  • Dependence on global trade - much of FedEx’s business depends on free and open trade around the world and any supply chain disruptions, such as in 2022, will have a negative effect on the company’s bottom line 
  • Intense competition - the global transportation and logistics industry is very competitive, which gives FedEx very little room for error when it comes to their operational decisions 
  • Regulatory risk - operating in over 200 countries, FedEx is subject to a lot of regulatory scrutiny around the world, which can vary greatly from country to country 
  • Environmental concerns - FedEx’s business is emission-heavy, which subjects the company to a lot of scrutiny and forces it to invest heavily in reducing its carbon footprint 

Key Takeaways FromEverything You Need To Know About FedEx Stock

  • Founded in 1971, FedEx has become one of the largest logistics and delivery companies in the world
  • The company went public in 1978 on the New York Stock Exchange, under the FDX ticker symbol and is a part of the S&P 500 index
  • The Covid-19 pandemic saw the stock surge to all-time highs but lost half of its value in 2022. However, FedEx stock has rebounded since the start of 2023
  • At a lower valuation and a healthy dividend yield, FedEx could increase in the long term, but analysts are mixed about the stock 

FAQs On Everything You Need To Know About FedEx Stock

Where does FedEx trade its stock?

FedEx trades its stock on the New York Stock Exchange after going public in 1978 under the FDX ticker symbol. The stock is a component of the S&P 500, as well as the Dow Jones Transportation Average. 

Does FedEx pay dividends on its stock?

FedEx has paid dividends on its stock since 2002 and currently holds an annual dividend yield of 2.25%, which is an attractive yield for most income-oriented investors. 

Is FedEx stock a good buy?

FedEx has seen massive growth throughout the Covid-19 pandemic, but has since lost most of the surplus market value, as the company grapples with supply chain issues and inflation, the stock has analysts divided.