FedEx is one of the companies that seem to have benefitted as a result of the changes caused by the pandemic. With people staying at home and working from home, the demand for online shopping and home delivery has risen. Some say that the acceleration seen in the digital economy over the past year is something that normally would have taken a few years. Investors looking to leverage this trend may want to consider logistics stock to invest in 2021. Within the logistics sector, investors may want to look at companies like FedEx and United Parcel Service. They are among the leaders in the package delivery and supply chain segments. These segments seem to be on an uptrend since the last year or so.
FedEx Reports Its Q32021 Earnings Results
FedEx reported its third-quarter 2021 earnings results in March 2021. Revenue rose from $17.5 billion to $21.5 billion on a year-on-year basis. The operating margin also improved significantly from around 2.5% to over 4.5%. Earnings per share on a diluted basis jumped from $1.2 in Q32020 to $3.3 in Q32021. Management attributed the strong operating performance to high volumes in the domestic US residential package segment. The international priority service demand was also quite strong during the quarter. Company CFO Michael Lenz said, “Our growth in fiscal 2021 has identified opportunities for investments that further position us for sustained long-term growth in earnings and cash flows as we move into fiscal 2022 and beyond.” If you want to buy logistics stock, then FedEx Corporation could be a good company to study further.
FedEx Corporation’s stock has had a pretty good run over the last year. It has risen from around $127 to $277, as of close of 23rd April 2021. FedEx has done alright over a 5-year period as well, with the stock not far from doubling the price from 5 years ago. On 23rd April 2021, the stock was trading at a dividend yield of slightly less than 1%.