FEDEX

Analysis of Fedex share price

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Are you interested in the Fedex Group's US shares and would like to buy or trade them online? In this article, you will find all the stock market and economic data you need to successfully analyse its price. In particular, we will look at the company's activities, its main sources of revenue, its main competitors on the market and its most recent partnerships. We will also focus on helping you conduct your fundamental analysis of this value by explaining what you need to analyse in the news that may have an impact on its share price.

Elements that can influence the price of this asset:

Analysis N°1

First of all, we will look at the cooperation strategies that Fedex can put in place to promote its activities.

Analysis N°2

The merger and acquisition operations carried out by Fedex are also strong growth signals and help to gain competitiveness in the face of competition.

Analysis N°3

The energy commodities market, and in particular the price of fuel and its evolution over time, are also data that may impact the Fedex group's activities.

Analysis N°4

Fedex's results publications, which take place every year, but also the intermediate results are to be compared with the expectations and objectives set.

Analysis N°5

Finally, we will of course monitor the demand from this market with the main major statistics of this sector which will have an impact on the development of Fedex's turnover.

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General presentation of Fedex

In order to help you better understand the challenges and opportunities for growth of the Fedex company, we are now offering you to discover some information about the activities of this company and its main sources of profit.

The Fedex Corporation Group is an American company specialising in the transport and delivery of parcels. More precisely, Fedex is today the leader in express transport in the world.

In order to better understand the activities of this company, it is possible to divide them into different divisions according to the share of turnover they generate and in this way :

  • The largest share of this group's revenues comes from courier and express transport services. This division alone accounts for almost 53.6% of the company's turnover.
  • Next comes the delivery of small parcels, which generates almost 29.4% of Fedex's turnover.
  • In third place is the large parcel delivery business with a 10.9% share of the company's turnover.
  • Document management and office automation services generate nearly 2.4% of the company's turnover. These services are provided in particular through centres grouped under the Kinko banner.
  • Finally, the remaining 3.7% of turnover comes from ancillary activities.
Analysis of Fedex share price
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The major competitors of Fedex

Let's now take a look at the competitive environment of the Fedex group with a presentation of the various competitors of this company that you should watch out for in your analyses of this value:

UPS

UPS or United Parcel Service is an American postal company which is also known as "Big Brown" in reference to the brown colour of its employees' uniforms. This company is based in Atlanta but operates worldwide, as does Fedex.

USPS

Also known as the United States Postal Services, USPS is the United States government postal service and was formerly known as "US Mail". It has existed since 1775 and was created by an Executive Order of the Second Continental Congress in Philadelphia as the United States Post Office.

DHL

Finally, the DHL group is another American group specialising in transport and logistics which has since become an international group since it has integrated the Deutsche Post DHL group which is itself made up of Deutsche Post, the German postal company in charge of transporting mail and parcels in Germany, and DHL which remains the international transport and logistics group that we know. DHL itself is made up of various specialist divisions.


The major partners of Fedex

We now invite you to discover two strategic partnerships that the Fedex group has recently set up as examples of events that can influence its stock market performance:

Google Wings

In 2019, Google's Google Wings subsidiary announced a collaboration with Fedex and the Wallgreens pharmacy chain to automate drug delivery. The project is to deliver these drugs using autonomous drones and the pilot programme was launched in October of that same year after obtaining certification from the US Federal Aviation Administration or FAA.

La Poste

Previously in 2008, Fedex had also signed a major agreement with the French group La Poste with a view to bringing their mail, parcel and logistics activities closer together. Fedex thus became Chronopost's air operator for its international traffic and Chronopost International is responsible for distributing Fedex parcels in France and the rest of Europe.

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The factors in favour of a rise in the Fedex share price:

If you want to be able to predict how the Fedex group will evolve in terms of growth in the more or less long term, we now propose that you take a closer look at the strengths and weaknesses of this stock on the stock market with the main strengths and weaknesses of this company.
Let's start by summarising the main strengths of the Fedex group in relation to its competitors and which may enable it to gain in growth in the years to come in relation to the competition:

  • First of all, the Fedex Group has a strong presence in its sector of activity as it is currently one of the largest transport, logistics and courier companies in the world.
  • The Fedex Group is also an innovative group that sets itself apart from its competitors. The company is currently a pioneer in the field of shipping, freight and delivery, and has been since its creation in the 1970s. It continues to innovate every year to maintain its position.
  • The Fedex Group is also a large group. Indeed, its workforce is very strong with over 600,000 employees worldwide.
  • Another advantage is that the group is in exceptional financial health. For example, Fedex has a strong financial position on the NYSE and the S&P 500 index with annual revenues averaging over $140 billion in recent years.
  • The Fedex Group's advantages include the fact that it has several major freight hubs around the world, the largest of which are in the United States and Hong Kong, allowing it to handle shipments around the globe.
  • It is also notable that the group regularly acquires other logistics, transport and e-commerce businesses to strengthen its market position.
  • The group is also focusing on an environmentally friendly and sustainable business model, including the acquisition of electric vans.
  • The Fedex Group is also responsible for a number of commercial logistics and supply chain management activities on behalf of the US government and is one of the best known brands in the world.
  • Finally, the company has extensive operations around the world, with services to over 200 countries.
The factors in favour of a drop in the Fedex share price:

Of course, the Fedex group does not only have its advantages and must also deal with a few defects and weaknesses which we propose to discover now and which are all elements likely to lead to a drop in its share price:

  • First of all, due to its presence and activities throughout the world, the Fedex group's activities are highly exposed to lawsuits and strict policies in certain countries, which represents a potential brake on its growth.
  • Finally, the second most important shortcoming of this company is of course the strong competition in its sector of activity. It should be remembered that the delivery and logistics sector is one of the most competitive segments of the market today and that the growth of its market share is therefore limited by the presence of increasingly strong and numerous competitors.

When analysing this Fedex stock, you should always take these strengths and weaknesses into account in order to assess the impact of news and events.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

Who are the major shareholders of the Fedex group?

Today, the capital of Fedex is distributed as follows: 8.66% to Dodge & Cox, 7.44% to The Vanguard Group, 6.89% to Capital Research & Management, 5.89% to Frederick Smith, 5.73% to Primecap Management, 3.84% to SSgA Funds Management, 2.27% to BlackRock Fund Advisors, 1.64% to Marsico Capital Management, 1.59% to Frederick Smith Enterprises and 1.39% to Canada Pension Plan Investment Board.

How to anticipate the Fedex share price?

In order to anticipate future changes in the Fedex share price, you should take into account all events that may influence investors, such as major transactions by the group, its competitors or its earnings releases. However, you should always carry out a technical analysis of the share price in parallel and compare the signals you obtain through these two methods.

On which market is the Fedex share listed?

Fedex shares are currently listed on the Main Market of the NYSE New York Stock Exchange. As such, it is fairly easy to consult and follow its share price. As one of the largest financial markets in the world, the Fedex share is of interest to many investors and many specialised sites or brokers provide real-time and historical share price charts.

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