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FedEx Corporation – Freight Stocks 2021

The logistics and supply chain industries have been in the news lately. There are fears that inflation has led to extremely high prices for shipping goods from around the world. Such reports cite the rising freight prices to make their point. The pandemic has also boosted home delivery and online shopping. Such a trend would mean more demand for shipping packages in the US and other countries worldwide. FedEx Corporation is one of the leading companies when it comes to the ground delivery of small packages. It has benefitted from the growth in e-commerce and has the technological expertise to continue its growth. Investors looking at the logistics stock market investing will consider such well-established businesses for their long positions. Scale, a large network, and higher efficiency through technology are key factors to consider when looking at logistics companies.

FedEx Announces Q42021 Earnings Numbers

On 24th June 2021, FedEx Corporation released its fourth-quarter 2021 earnings results. While the company received some negative publicity due to the Indianapolis shooting incident, the financials looked strong. Total revenue rose from $17.4 billion in Q42020 to $22.6 billion. Operating income jumped from around $900 million in Q42020 to $1.97 billion. Earnings per share on a diluted basis also doubled from $2.53 in Q42020 to $5.01. The company has been quite confident about its prospects, and the management revealed that FedEx is planning to further increase its capacity. FedEx also continued to benefit from the growth in e-commerce as it continued to build its capabilities in last-mile delivery. E-commerce is one of the core strategic areas of focus for FedEx. The company appears to be well-positioned for future growth and is possible among the freight stocks 2021 to watch out for. 

Logistics Stock Market

The logistics industry has been adopting technology at a rapid pace. FedEx is no exception, as it has been using sensor-based technologies to not just track but also predict future scenarios. In addition, companies like FedEx are also automating their facilities and a lot of the warehouse functions are now conducted by machines.

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