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E-commerce Growth Aids FedEx (FDX), Rising Expenses Ail
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We recently issued an updated report on FedEx Corporation (FDX - Free Report) .
Akin to the past few quarters, FedEx's third-quarter fiscal 2021 results were aided by surge in e-commerce demand. The company's performance in the quarter was driven by higher Ground revenues (up 37%) on residential delivery volume growth. Quarterly results were also aided by an uptick in volumes at FedEx International Priority services and favorable pricing-related initiatives.
Moreover, FedEx's cash position is solid. Notably, FedEx exited the third quarter of fiscal 2021 with cash and cash equivalents of $8,856 million, way above the debt load (current portion) of $646 million. This indicates that the company has sufficient cash to meet its current debt obligations.
Meanwhile, sharp rise in operating expenses is a concern. Notably, operating costs escalated 20% in the third quarter of fiscal 2021 due to factors like high variable compensation expenses and increased labor rates. Operating expenses have increased in double digits (15%) year over year in the first nine months of fiscal 2021. Persistent increase in operating costs might dent bottom-line growth.
Long-term (three to five years) expected earnings per share growth rate for Landstar, Triton and Herc Holdings is projected at 12%, 10% and 31.2%, respectively.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Image: Shutterstock
E-commerce Growth Aids FedEx (FDX), Rising Expenses Ail
We recently issued an updated report on FedEx Corporation (FDX - Free Report) .
Akin to the past few quarters, FedEx's third-quarter fiscal 2021 results were aided by surge in e-commerce demand. The company's performance in the quarter was driven by higher Ground revenues (up 37%) on residential delivery volume growth. Quarterly results were also aided by an uptick in volumes at FedEx International Priority services and favorable pricing-related initiatives.
Moreover, FedEx's cash position is solid. Notably, FedEx exited the third quarter of fiscal 2021 with cash and cash equivalents of $8,856 million, way above the debt load (current portion) of $646 million. This indicates that the company has sufficient cash to meet its current debt obligations.
Meanwhile, sharp rise in operating expenses is a concern. Notably, operating costs escalated 20% in the third quarter of fiscal 2021 due to factors like high variable compensation expenses and increased labor rates. Operating expenses have increased in double digits (15%) year over year in the first nine months of fiscal 2021. Persistent increase in operating costs might dent bottom-line growth.
Zacks Rank & Stocks to Consider
FedEx currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Transportation sector include Landstar System, Inc. (LSTR - Free Report) , Triton International Limited and Herc Holdings Inc. (HRI - Free Report) . Landstar carries a Zacks Rank #2 (Buy), while Triton 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 (three to five years) expected earnings per share growth rate for Landstar, Triton and Herc Holdings is projected at 12%, 10% and 31.2%, respectively.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>