Online shopping still spurring Fedex

Article Excerpt

FEDEX CORP. $311 remains a buy. The company (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 262.6 million; Market cap: $81.7 billion; Price-to-sales ratio: 1.1; Dividend yield: 0.8%; TSINetwork Rating: Average; delivers packages and documents in the U.S. and 220 other countries. The stock has nearly tripled in the past year, as the COVID-19 pandemic has prompted more consumers and small businesses to buy goods online instead of in physical stores. In the quarter ended February 28, 2021, ground delivery volumes jumped 23.4% from a year earlier, while FedEx’s revenue per package rose 10.7%. We expect online shopping volumes will remain high, as consumers have become more comfortable buying products over the Internet. Even after its big jump, the stock still trades at an attractive 17.4 times the $17.91 a share that FedEx will probably earn in the fiscal year ending May 31, 2021. The $2.60 dividend yields 0.8%. FedEx is a buy. buy…

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