FedEx (FDX) Gained From Strong Execution in Q1

2 days ago 4

Soumya Eswaran

Mon, May 18, 2026 astatine 8:21 AM CDT 3 min read

Longleaf Partners, managed by Southeastern Asset Management, released its first-quarter 2026 capitalist letter. A transcript of the missive is disposable to download here. The Fund returned -4.46% successful the quarter, compared to the S&P 500’s -4.33% and the Russell 1000 Value Index’s 2.10% return. The twelvemonth began likewise to the 2nd fractional of 2025, with rising stocks and penalization for caution. February was marked by antithetic sector-wide movements influenced by perceived AI outcomes. Complications arose from the Iran War and expanding backstage recognition risks. The Fund initially lagged the market, but show improved arsenic conditions worsened. The money ended the 4th with a P/V of mid-50s%, which bodes good for promising aboriginal returns. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2026.

In its first-quarter 2026 capitalist letter, Longleaf Partners Fund highlighted stocks similar FedEx Corporation (NYSE:FDX). FedEx Corporation (NYSE:FDX) is simply a US-based institution that focuses connected transportation, e-commerce, and concern services. On May 15, 2026, FedEx Corporation (NYSE:FDX) closed astatine $375.78 per share. One-month instrumentality of FedEx Corporation (NYSE:FDX) was -4.57%, and its shares gained 66.19% implicit the past 52 weeks. FedEx Corporation (NYSE:FDX) has a marketplace capitalization of $89.66 billion.

Longleaf Partners Fund stated the pursuing regarding FedEx Corporation (NYSE:FDX) successful its Q1 2026 capitalist letter:

"FedEx Corporation (NYSE:FDX) – Global logistics institution FedEx was a contributor for the quarter. The banal responded to different 4th of beardown execution, led by continued momentum astatine the Federal Express (FEC) segment, wherever measurement growth, output growth, and outgo power again translated into meaningful nett growth. FEC delivered its astir profitable highest vacation play ever, with margins expanding for a sixth consecutive 4th arsenic much measurement flowed done Network 2.0-optimized facilities and absorption continued to determination the concern toward higher-value B2B verticals. FedEx Freight remains connected way to beryllium spun disconnected connected June 1st and volition beryllium good positioned to payment from a betterment successful concern request arsenic an autarkic company. Even aft the banal terms move, we proceed to judge the marketplace underappreciates the net powerfulness of the halfway parcels concern and the worth that tin beryllium unlocked done the Freight separation."

Should You Buy FedEx Corporation (FDX) for its Dividend?

FedEx Corporation (NYSE:FDX) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 68 hedge money portfolios held FedEx Corporation (NYSE:FDX) astatine the extremity of the 4th quarter, up from 60 successful the erstwhile quarter. While we admit the imaginable of FedEx Corporation (NYSE:FDX) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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