Investment Thesis
FedEx provides global shipping through Express, Ground, and Freight segments. DRIVE cost program, network modernization, and e-commerce/logistics partnerships aim to expand margins and cash flow.
- Network Optimization: Air-to-ground integration and hub rationalization cut costs.
- E-commerce Focus: Ground network enhancements capture SMB and DTC shipments.
- Return on Capital: Disciplined capex and share repurchases improve ROIC.