FedEx Corporation (FDX) Slid on Underwhelming Segment Result

Soumya Eswaran

Wed, May 14, 2025, 8:51 AM 2 min read

The London Company, an investment management company, released “The London Company Large Cap Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The US equities experienced a correction in the first quarter following two years of robust performance. The portfolio returned 2.4% (2.3%, net) during the quarter compared to a 4.5% increase for the Russell 1000 Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, The London Company Large Cap Strategy highlighted stocks such as FedEx Corporation (NYSE:FDX). Founded in 1971, FedEx Corporation (NYSE:FDX) offers transportation, e-commerce, and business services. The one-month return of FedEx Corporation (NYSE:FDX) was -15.70%, and its shares lost 10.95% of their value over the last 52 weeks. On May 13, 2025, FedEx Corporation (NYSE:FDX) stock closed at $231.15 per share with a market capitalization of $55.358 billion.

The London Company Large Cap Strategy stated the following regarding FedEx Corporation (NYSE:FDX) in its Q1 2025 investor letter:

"FedEx Corporation (NYSE:FDX) - FDX shares lagged this quarter due to underwhelming segment results due to a slowing freight backdrop. Management implemented an aggressive cost-cutting plan to improve margins. Despite these challenges, we remain optimistic about FDX's long-term outlook as the Freight separation could unlock value and its network is well-positioned to benefit from a freight recovery."

A driver unloading packages from a van for a time-critical delivery.

FedEx Corporation (NYSE:FDX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held FedEx Corporation (NYSE:FDX) at the end of the fourth quarter which was 55 in the previous quarter. While we acknowledge the potential of FedEx Corporation (NYSE:FDX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we covered FedEx Corporation (NYSE:FDX) and shared the list of worst blue-chip stocks to buy. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.