Wednesday, July 10, 2013

Why FedEx Is Poised to Keep Poppin'

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, express delivery gorilla FedEx (NYSE: FDX  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at FedEx, and see what CAPS investors are saying about the stock right now.

FedEx facts

 

 

Headquarters (founded)

Memphis, Tenn. (1971)

Market Cap

$31.7 billion

Industry

Air freight and logistics

Trailing-12-Month Revenue

$44.3 billion

Management

Founder/Chairman/CEO Frederick Smith

CFO Alan Graf

Return on Equity (average, past 3 years)

11.1%

Cash/Debt

$4.9 billion / $3.0 billion

Dividend Yield

0.6%

Competitors

DHL International

TNT Express

United Parcel Service

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 91% of the 2,339 members who have rated FedEx believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, TMFGemHunter, succinctly summed up the bull case for our community:

FedEx is aggressively restructuring its trademark Express business in order to better match capacity to demand for priority shipments. At the same time, it is growing its FedEx Ground business rapidly, gaining share vis-a-vis competitors. The company is driving its cost structure down and will reap a big payoff when global GDP growth starts to increase. EPS could approximately double in the next 4 years.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, FedEx may not be your top choice.

With the U.S. relying on the rest of the world for such a large percentage of our goods, many investors are ready for the end of the "made in China" era. Well, it may be here. Read all about the biggest industry disrupters since the personal computer in 3 Stocks to Own for the New Industrial Revolution. Just click here to learn more.

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