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FedEx (FDX) to Buy ShopRunner, Boost E-commerce Capabilities

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In a bid to take advantage of the growing e-commerce market in the pandemic, leading package delivery company FedEx Corporation (FDX - Free Report) agreed to acquire ShopRunner. This Chicago-based e-commerce platform connects online shoppers with their favorite merchants and brands. The deal is expected to close by Dec 31, 2020.

Currently, ShopRunner connects millions of consumers to more than 100 of their favorite brands and offers a seamless shopping experience. Certain benefits that members enjoy include free two-day shipping, free returns, member-exclusive discounts, and seamless checkout. ShopRunner’s data-driven marketing and omnichannel-enabled capabilities also attract high-value customers.

Following the closure of the deal, ShopRunner will operate as a subsidiary of FedEx Services. Notably, FedEx Services refers to an organization dedicated to integrating the technology and services needed by customers to create solutions for global supply chains, e-commerce and other issues.
On materialization, the deal will boost the online shopping experience of customers by integrating ShopRunner’s pre-purchase offerings and FedEx’s post-purchase logistics intelligence.

In the current coronavirus-scarred scenario, E-commerce is witnessing higher demand amid the pandemic-induced social-distancing protocols and quarantines. Therefore, FedEx’s move to boost its e-commerce portfolio by taking over ShopRunner is a very prudent one and is likely to further strengthen its revenue stream.

Zacks Rank & Stocks to Consider

FedEx currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , Landstar System, Inc. (LSTR - Free Report) and Herc Holdings Inc. (HRI - Free Report) . Landstar carries a Zacks Rank #2 (Buy), while Knight-Swift and Herc Holdings sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Landstar and Herc Holdings is pegged at 15%, 12% and 12.6%, respectively.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>
 

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