FedEx Freight

FDXF

Market cap $22.4B

I assign FedEx Freight Holding Company a buy rating, driven by early signs of freight recovery and substantial spare capacity. FDXF's high fixed-cost base and 30% available terminal capacity enable outsized profit leverage as shipment volumes normalize. Dimensional pricing and a fully staffed LTL sales force are set to enhance yield and capture higher-margin demand during the upcycle.

FedEx Freight Holding Company Inc. (NYSE:FDXF) received renewed support from Bank of America (BofA) following its first earnings report as a standalone company, with the brokerage reiterating its Buy rating and raising its price forecast to $187 from $185.

FedEx Freight Holding Company, Inc. (FDXF) Q4 2026 Earnings Call Transcript

The company expects revenue to grow 4% to 6% for June 1 to Dec. 31, and said the outlook reflects its confidence in the underlying strength of the business.

MEMPHIS, Tenn.--(BUSINESS WIRE)--FedEx Freight (NYSE: FDXF) today reported segmented financial results for the fourth quarter and full fiscal year ended May 31, 2026, as previously released by FedEx Corporation.

Stocks are having a quiet morning Monday as investors come off a long holiday weekend with a close eye on peace talks between the U.S. and Iran; a second day of negotiations in Switzerland has reportedly concluded after renewed threats against Iran from President Trump and continued attacks in Lebanon by Israel made for an eventful first day of talks; earnings from FedEx and Micron are on tap this week, along with the release of the Fed's preferred measure of inflation; SpaceX shares are poised to start this week with a third straight day of declines; and shares of Apogee Therapeutics are soaring on news it is being acquired by AbbVie for $11 billion. Here's what you need to know today.

Shares of major less-than-truckload (LTL) transportation companies fell on Wednesday. The decline came after Amazon unveiled a broader expansion of its freight business, raising concerns that the e-commerce giant could become a stronger competitor in the freight and logistics market.

Shares of newly-independent FedEx Freight turned out to be a haven for investors on Friday.

FedEx Freight Holding Company, Inc. trades at ~$150 post-spin, with valuation reflecting mid-twenty times pro forma earnings and uncertain near-term margins. FDXF targets mid-single-digit sales growth, margin expansion from 12% to 15%, and capital spending at 5% of sales. Near-term margin pressure is likely due to corporate cost allocation and transition service agreements, making current valuation less compelling.