Memphis, Tennessee-based FedEx Corporation (FDX) provides transportation, e-commerce, and business services. Valued at $54.2 billion by market cap, the company provides worldwide express and freight delivery, ground small-parcels, less-than-truckload, supply chain management, customs brokerage services, trade facilitation, and electronic commerce solutions.

Shares of this logistics giant have underperformed the broader market over the past year. FDX has declined 13.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 11.9%. In 2025, FDX’s stock fell 21.4%, compared to the SPX’s 1% rise on a YTD basis. 

Narrowing the focus, FDX’s underperformance is also apparent compared to the Pacer Industrials and Logistics ETF (SHPP). The exchange-traded fund has gained about 1.4% over the past year. Moreover, the ETF’s 4.6% returns on a YTD basis outshine the stock’s double-digit losses over the same time frame.

FDX has been underperforming due to geopolitical uncertainty, tariffs, and higher inflation impacting consumer sentiment and growth expectations. Revenue is being pressured by weak demand and concerns over new union negotiations and declining package volumes have risen. Management cites a weak industrial economy and customer preference for lower-cost services as contributing factors to its weak performance.

On Mar. 20, FDX reported its Q3 results, and its shares closed down by 6.5% in the following trading session. Its adjusted EPS of $4.51 did not meet Wall Street expectations of $4.65. The company’s revenue was $22.2 billion, topping Wall Street forecasts of $21.9 billion. FDX expects full-year adjusted EPS in the range of $18 to $18.60.

For the current fiscal year, ending in May, analysts expect FDX’s EPS to grow 2.1% to $18.17 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.

Among the 30 analysts covering FDX stock, the consensus is a “Moderate Buy.” That’s based on 19 “Strong Buy” ratings, one “Moderate Buy,” eight “Holds,” and two “Strong Sells.”

This configuration is more bullish than two months ago, with 18 analysts suggesting a “Strong Buy.” 

On May 19, BMO Capital kept a “Market Perform” rating on FDX and lowered its price target to $260, implying a potential upside of 17.6% from current levels.

The mean price target of $282.45 represents a 27.7% premium to FDX’s current price levels. The Street-high price target of $354 suggests an ambitious upside potential of 60.1%.