FEDEX CORP. $171 (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 283.3 million; Market cap: $48.4 billion; Price-to-sales ratio: 1.1; Dividend yield: 0.5%; TSINetwork Rating: Average; www.fedex.com) continues to profit from the rise of online shopping, which has boosted demand for its delivery services.
The company stands to gain from lower oil prices and new fuel-efficient planes. It has also undertaken an aggressive cost-cutting plan, the benefits of which should begin to appear in 2015.
In addition, FedEx’s largely non-unionized workforce helps keep its labour costs down, and the company should see higher revenue now that it’s basing its shipping fees on a parcel’s size rather than its weight.
FedEx is a buy.