Continued Turbulence Makes It Hard for FedEx to Deliver for Investors in 2020
With the busy holiday shopping season now complete, companies in the retail sector -- which are often highly dependent on year-end sales for their bottom lines -- will be coming under more scrutiny to see how well they did. Airfreight firms also benefit directly from the e-commerce frenzy during the last few weeks of the year and will be under added scrutiny as well as we head into January.
Despite the expected robust consumer spending on e-commerce this season -- and the added shipping revenue that invariably generates -- FedEx (NYSE: FDX) is still face headwinds and has some investors worried as no near-term solution is in sight. The second-quarter earnings report that came out in mid-December outlined a series of underlying market factors that are pressuring the company. Even though the stock price has recovered somewhat from its 52-week low just after the report, FedEx will be facing strong headwinds during 2020 and questions are growing about how much more recovery will come.
Image source: FedEx
Source Fool.com
