FedEx: Still Packing Up Profit - Smart Money
Although the global economy remains shaky, FedEx has upside for the long haul. It has a growing footprint in big overseas markets like China, enough operating leverage to boost earnings when volumes ramp up, and solid growth at its very profitable FedEx Ground unit. In fact, FedEx and its main rival, United Parcel Service, "are likely to become a global duopoly, and both companies have nearly insurmountable barriers to entry," says Keith Schoonmaker, a senior stock analyst at Morningstar.
Although the global economy remains shaky, FedEx has upside for the long haul. It has a growing footprint in big overseas markets like China, enough operating leverage to boost earnings when volumes ramp up, and solid growth at its very profitable FedEx Ground unit. In fact, FedEx and its main rival, United Parcel Service, "are likely to become a global duopoly, and both companies have nearly insurmountable barriers to entry," says Keith Schoonmaker, a senior stock analyst at Morningstar.
