FedEx Stock Fall Is Unjustified

  • FedEx is deeply undervalued versus UPS, with lower leverage and significant cost-cutting initiatives driving improved profitability and shareholder returns. Despite recent share price declines and some operational weaknesses, FedEx exceeded its own revenue targets and delivered solid earnings growth. Ongoing DRIVE and Network 2.0 initiatives have achieved $4 billion in cost reductions, with more savings and a FedEx Freight spinoff expected in 2026.