Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, January 3, 2025

Article Excerpt

FEDEX CORP., $274.41, New York symbol FDX, remains a buy for long-term gains. The company delivers packages in the U.S. and 220 other countries. FedEx now plans to spin off its FedEx Freight operations as a separate company. This business is a leading provider of less-than-truckload (LTL) services, which combines freight from multiple customers into a single vehicle. It accounts for about 10% of FedEx’s total revenue. Spinoffs tend to work out well for both the new firm and the former parent, as they let both better focus on their main businesses. FedEx will structure the separation so that investors will only be liable for capital gains taxes when they sell their new shares. It expects to complete the transaction in mid-2026. Meantime, in FedEx’s fiscal 2025 second quarter, ended November 30, 2024, revenue declined 0.9%, to $21.97 billion from $22.17 billion a year earlier. That missed the consensus forecast of $22.11 billion. The lower revenue is largely due to weaker demand for shipping services…