• 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 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. 

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.

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. 

Pros

• 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

Cons

• 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 

• 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