FDX
Not a bargain-bin story
FedEx is getting the kind of praise that makes value hunters do a double take: the stock isn’t cheap, but the business might be getting stronger in all the right places. The new bull case isn’t about multiple expansion fairy dust — it’s about FedEx becoming a more efficient machine.
The ugly middle is getting trimmed
The Freight spinoff is doing more than tidying up the org chart. It’s simplifying the business and nudging FedEx toward higher-value, more service-critical B2B shipments instead of low-margin volume-chasing. Translation: less “ship anything, anywhere” chaos, more “pay us for the important stuff.”
Network 2.0: the real ammo
The big lever here is Network 2.0, FedEx’s plan to squeeze roughly $2 billion in annual savings by 2027. About 65% of eligible volume is expected to move through optimized stations before then, which is corporate-speak for “we found a lot of places to stop leaking money.”
Why investors should care
If FedEx can keep lifting margins, improving cash flow, and turning capital into returns more efficiently, the stock may not need to be “cheap” to work. Big picture: sometimes the best package is the one that arrives later — after the company finally fixes the routing.