We have been hearing quite a bit about logistics in recent times. In the year 2020, most of the news about logistics was negative. We read how the pandemic has disrupted logistics chains throughout the world and how dependence on China has exposed the shortcomings of the existent supply chain models. However, specific niches within the logistics industry have done quite well. For example, e-commerce has made tremendous gains as people were locked into their homes due to shelter-in-place orders. The overall digital economy has grown by a proportion that would have taken years. The pandemic has accelerated the growth of e-commerce, and companies like FedEx Corporation seem to be the beneficiaries of this trend. Investors looking for the best logistics stocks to buy right now may want to consider adding FedEx to their portfolio.
What Is FedEx Corporation’s Business?
FedEx Corporation has four main reportable business segments. The FedEx Express segment focuses on time-bound delivery to over 220 countries and regions around the world. It is a transportation business that is global in nature. The FedEx Ground segment offers service for the delivery of small parcels throughout the US and Canada. This also includes the consolidation as well as delivery of packages that are time-sensitive. The FexEx Freight segment provides less-than-truckload freight services to all US states and territories, including the US Virgin Islands and Puerto Rico. The FedEx Services segment offers technical support, collection and billing solutions, customer service, information technology solutions, marketing, sales, and other back-office functions that support the other business segments of FedEx. FedEx is a complete logistics company, and investors looking to buy logistics stock 2021 may want to consider a more detailed analysis of FedEx Corporation.
FedEx Corporation’s stock closed at $280.34 on 20th April 2021. The stock was trading at a 0.93% dividend yield at the time and had gone up by 2.3% over the preceding 30 days. On a 1-year basis, the stock was up by a significant 132%.