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Strong Buy Stocks from Top Wall Street Analysts
Latest stocks with a Strong Buy rating from the top performing 25% of analysts tracked by WallStreetZen

Analyst / FirmCompanyPriceRatingPrice TargetUpside/DownsideDate
Ken Hoexter
Bank of America
Top 11%
90
FEDEX CORPFDX
$243.24Strong Buy$276.00+13.47%
2 days ago
Analyst Ranking
Top 11%
#414 out of 3772 analysts
Average Return
+5.78%
Win Rate
53%42 out of 79
Risk vs Reward
Poor
Good

Analyst Color

Hoexter raised his price target on FedEx Corporation following the release of the company's Q4 and FY 2022 earnings report on 2022/06/23.

Management guided FY 2023 EPS of $22.50 to $24.50 excluding some items, the analyst reported.

The company's upcoming analyst meeting, its first in 10 years, will provide three-year targets.

Hoexter said he is expecting close to $30 in EPS by FY 2025.

FedEx reported:

For Q4 2022:

  • EPS of $6.87, which missed the Zacks Consensus Estimate of $6.91, but beat Q4 2021's $5.01 by 37.13%.
  • Revenue of $24.4B, which beat the Zacks Consensus Estimate of $24.3B, but beat Q4 2021's $22.6B by 7.96%.

For FY 2022:

  • EPS of $20.61.
  • Revenue of $93.5B.
  • Capital spending of $6.8B.

For FY 2023, with a caveat*, management guided:

  • EPS of $22.45 to $24.45 before the MTM retirement plans, accounting adjustments, and costs related to business optimization initiatives.
  • EPS of $22.50 to $24.50 before the MTM retirement plans, accounting adjustments, and costs related to business optimization initiatives, but excluding estimated costs associated with business realignment activities.
  • ETR of approximately 24% prior to the MTM retirement plans accounting adjustments and costs related to business optimization initiatives.
  • Capital spending of $6.8B, with a priority on investments to improve efficiency, including fleet and facility modernization, and increased automation.

* "The company is currently unable to forecast the amount and timing of these additional costs, which may impact the FY 2023 effective tax rate (ETR). As a result, FedEx is unable to provide an FY 2023 EPS or ETR outlook on a GAAP basis."

Raj Subramaniam, CEO, commented, “Our FY 2022 financial performance was a result of our team's ability to adapt to a number of unexpected challenges and is a testament to the FedEx value proposition and the execution of our long-term strategy."

“Our foundational investments have set the stage for a strong FY 2023. As we move forward, our focus will be on revenue quality and lowering our cost to serve. I am honored to lead our dedicated global team, who enable FedEx to lead the industry from a position of strength.”

Philippe Houchois
Jefferies
Top 19%
82
Tesla IncTSLA
$800.00Strong Buy$850.00+6.25%
a day ago

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