Shipping company FedEx (FDX) has enjoyed steady gains over the last year, and the stock is currently trading just shy of its all-time high. Strength in the overall economy is working in the company’s favor, as is the growing importance of e-commerce in retail which will continue to grow and help drive demand for FedEx services. FedEx has shown 18.8% average earnings growth over the last five years, and look ahead analysts forecast profits to rise by 11.7% per annum over the next five years. The company reported much stronger than expected fiscal Q2 numbers in mid-December, with earnings of $3.18 versus the consensus $2.89, and sales of $16.3 billion which shattered the $15.68 billion forecast. The strong report shot the stock higher. FDX has a P/E of 24.66, which could put a cap on the stock unless analyst start to lift their price target on the stock, which is currently trading at $267.65, versus an average price target of $265.73. The stock gets an overall ranking of 84 from InvestorsObserver’s Stock Score Report.
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