Why FedEx Shares Soared Higher in August
Shares of FedEx delivered for investors in August, gaining 30.5%, according to data provided by S&P Global Market Intelligence. The long beaten-down stock appears to have finally turned a corner after a miserable 2019, and Wall Street believes it still has the potential to go higher from here.
FedEx spent most of 2019 in investment mode, hoping to see the payoff from increasing warehouse capacity and automating its internal systems in 2020. But the COVID-19 pandemic altered those plans, leaving investors uncertain about what to expect from transportation companies.
A late-June quarterly earnings report relieved much of that uncertainty, as FedEx posted results that indicated the flood of additional e-commerce business is offsetting lost revenue due to the pandemic cutting supply chains and reducing industrial activity. FedEx shares gained more than 20% in July and continued that strong showing in August as analysts jumped on the bandwagon.
Source Fool.com
