FedEx Will Deliver Strong Returns Without Amazon
For stockholders, FedEx (NYSE: FDX) has been dead money for years. Since peaking around $270 per share in 2018, the global courier's stock has been more than cut in half. Investor concerns center around their ability to evolve in a world shifting toward digitally enabled consumption. This shift continues to manifest itself in strong e-commerce demand, a style of consumption relying largely on ground fulfillment. The issue?
FedEx's strength is in their express (or air) unit, which instead mainly supports business to business logistics. Desire to take a larger piece of ground deliveries prompted the Memphis-based company to shift capital allocation to projects serving e-commerce. To succeed, their competitive strategy aims to build out seven day and last mile delivery.
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Source Fool.com
