FedEx Is A Buy Despite An Uncertain Macro-Environment

  • FedEx's revenue growth is sluggish, but operational efficiency has driven strong EPS growth and margin improvement, demonstrating resilience despite tariff headwinds. Cash flow generation is a minor concern, but the company is shifting capital allocation toward increased dividends and share buybacks, enhancing shareholder returns. Q1 guidance is mixed, with only modest revenue and EPS growth expected, indicating that efficiency gains may be slowing.