Fedex Margins Can Only Expand

Dow Jones
Jun 24

0930 GMT - FedEx margins are at a trough and will expand thanks to tech investments and efficiency savings, Jefferies' Stephanie Moore writes. The delivery group's margins are less than half those of its top competitor Old Dominion, the analyst writes. As a result of a fresh sales team and technology improvements that will increase the density of packaging in trucks, margins could expand by 350 basis points by 2029, Moore says. The company will also benefit from a broader growth uptick in the freight sector, she adds. Jefferies initiates its coverage of FedEx with a buy rating. FedEx after market close Tuesday reported a fall in profit for the latest quarter. Shares fall 7.2%.(josephmichael.stonor@wsj.com)

 

(END) Dow Jones Newswires

June 24, 2026 05:31 ET (09:31 GMT)

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