Core Insights - The article discusses the approaching shipping deadlines for packages to arrive by Christmas, emphasizing the urgency for consumers to ship early to ensure timely delivery [1][2]. Shipping Carrier Updates - UPS has encouraged early shopping and shipping since September due to the expected surge in package volume during the holiday season [2]. - The U.S. Postal Service (USPS) has increased its daily processing capacity at its largest facility in Los Angeles from 60 million to 88 million packages by adding over 600 new sorting machines [3][5]. - FedEx has outlined specific deadlines for various shipping options, with the last day for same-day delivery being December 24 and for overnight services being December 23 [8][9]. Specific Shipping Deadlines - **UPS Deadlines**: - Ground: Check online for specific deadlines based on location [5]. - 3 Day Select: December 19, 2025 [5]. - 2nd Day Air: December 22, 2025 [6]. - Next Day Air: December 23, 2025 [6]. - **FedEx Deadlines**: - SameDay: December 24 for same-day delivery options [8]. - Overnight services: December 23 [8]. - 2Day services: December 22 [9]. - Express Saver: December 19 [9]. - **USPS Deadlines**: - Ground Advantage: December 17 [12]. - First-Class Mail: December 17 [12]. - Priority Mail: December 18 [12]. - Priority Mail Express: December 20 [12]. - **USPS Deadlines for Alaska, Hawaii, Puerto Rico, and U.S. Territories**: - Ground Advantage: December 16 [13]. - First-Class Mail: December 17 [13].

Core Viewpoint - FedEx Corporation is a leading player in the transportation and logistics sector, with a positive growth outlook supported by institutional investments and analyst ratings [1][2][4]. Investment Ratings and Price Targets - Barclays maintains an "Overweight" rating for FedEx, raising its price target from $320 to $360, reflecting confidence in the company's growth potential [2]. - The current stock price is approximately $281.23, categorized as a "hold" [2]. Institutional Investments - B. Riley Wealth Advisors Inc. acquired 4,865 shares valued at about $1.11 million, indicating growing confidence in FedEx's future performance [3]. - Valeo Financial Advisors LLC increased its stake to 3.74 million shares worth approximately $851 million [3]. - Norges Bank acquired a new stake valued at around $605 million during the second quarter, while AQR Capital Management LLC increased its holdings by 750.9%, now owning over one million shares [3]. Stock Performance and Market Capitalization - FedEx's stock price is currently $281.72, with a slight increase of 0.17% or $0.49 [4]. - The stock has traded between $281.08 and $282.99 today, with a one-year high of $295.24 and a low of $194.30 [4]. - FedEx has a market capitalization of approximately $66.47 billion, solidifying its position in the logistics industry [4].

Market Overview - The market is showing positive movement after a down-session on Friday, with the Dow up by 244 points, S&P 500 up by 36 points, Nasdaq up by 160 points, and Russell 2000 up by 21 points [2] - The 10-year bond yield remains stable at 4.17%, while the 2-year bond yield has decreased to 3.50% [2] Economic Indicators - The Empire State Manufacturing Index reported a negative reading of -3.9 for December, significantly missing expectations of +10 and down from +18.7 in the previous month [3][4] - This marks only the second negative monthly print in the last six months, indicating ongoing struggles in domestic manufacturing [4] - The Homebuilders Confidence survey for December is expected to show a print of 38, indicating ongoing challenges for domestic homebuilders [5] Federal Reserve Insights - Fed Governor Stephen Miran and New York Fed President John Williams are scheduled to discuss interest-rate decision-making, with differing views on rate cuts [6] - The upcoming jobs report is anticipated to show an increase of 50,000 new jobs for November, which is below the threshold needed to maintain positive job growth, with the unemployment rate expected to rise to 4.5% [9][10] Earnings Reports - Key earnings data is expected from various companies, including homebuilders Lennar and KB Home, data storage producer Micron, FedEx, and Nike during the final full trading week of 2025 [11]

Core Viewpoint - FedEx is expected to report quarterly earnings of $4.05 per share, unchanged from the previous year, with revenues projected at $22.88 billion, reflecting a 4.2% year-over-year increase [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised upward by 1.1%, indicating analysts' reassessment of their initial forecasts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenue- FedEx Express- Package- International economy' at $1.53 billion, a decrease of 3.6% year-over-year [5]. - The 'Revenue- FedEx Express- Package- Total international export package revenue' is projected to reach $3.79 billion, down 0.9% from the prior-year quarter [5]. - The 'Revenue- Federal Express segment' is forecasted to be $19.70 billion, reflecting a year-over-year increase of 4.6% [6]. - 'Revenue- FedEx Express- Freight- Total freight revenue' is expected to reach $1.57 billion, indicating a 1.3% increase from the previous year [6]. Package Volume and Revenue per Package - The consensus estimate for 'FedEx Express - Package - Average daily package volume - International economy' is 583.31 thousand, slightly down from 586.00 thousand reported last year [7]. - 'FedEx Express - Package - Average daily package volume - Total international export ADV' is projected at 1.14 million, down from 1.18 million in the same quarter last year [7]. - Analysts expect 'FedEx Express - Package - Revenue per package - International export composite' to be $52.10, up from $51.37 reported last year [8]. - The 'FedEx Express - Package - Revenue per package - International economy' is projected to be $40.98, down from $43.03 in the same quarter of the previous year [9]. Freight Metrics - 'FedEx Express - Freight - Average daily freight pounds - International economy' is expected to be 12.53 million, slightly up from 12.48 million reported last year [8]. - 'FedEx Express - Freight - Average daily freight pounds - International priority' is projected to reach 4.99 million, compared to 4.93 million reported last year [9]. Market Performance - FedEx shares have increased by 6.3% over the past month, outperforming the Zacks S&P 500 composite, which saw a -0.2% change [11].

Core Viewpoint - The article discusses the performance and outlook of FedEx Corporation (FDX), highlighting a previous rating of HOLD and noting the company's strong dividend as a positive aspect [1]. Summary by Relevant Sections - **Company Performance** - FedEx Corporation was last covered in June, with a rating of HOLD due to various favorable factors, particularly its strong dividend [1]. - **Analyst Background** - The analyst has over 10 years of experience in the investment arena, with a master's degree in Analytics and a bachelor's degree in Accounting, indicating a solid foundation for evaluating companies like FedEx [1]. - **Investment Philosophy** - The analyst expresses a personal interest in dividend investing, suggesting a focus on income-generating investments, which aligns with FedEx's strong dividend performance [1].

Core Viewpoint - FedEx is set to report its Q2 FY2026 earnings on December 18, with expectations of adjusted earnings per share (EPS) at $4.09 and revenue at $22.8 billion, following two previous quarters where both revenue and earnings exceeded market expectations [1] Group 1: Financial Performance Expectations - FedEx management anticipates a revenue growth of 4% to 6% year-over-year for FY2026, with unadjusted EPS expected between $14.20 and $16.00, and adjusted EPS projected to be between $17.20 and $19.00 for the year [1] - The company expects to incur a loss of $1 billion this year due to trade disruptions caused by tariffs, including increased customs costs and a decline in shipping volumes, particularly between the U.S. and China [1] Group 2: Seasonal Demand Impact - Strong demand from the holiday shopping season is expected to boost FedEx's Q2 performance, with management indicating that seasonal results will remain moderately strong [2] - The upcoming quarterly EPS is anticipated to exceed last year's $4.05 [2] Group 3: Cost Reduction and Efficiency - Ongoing uncertainties related to tariffs and persistent high inflation have negatively impacted consumer confidence and growth expectations, leading to a decline in FedEx's performance [3] - The DRIVE program, launched in Q2 FY2023, aims to enhance long-term profitability through cost-cutting measures, including reducing flight frequencies, grounding certain aircraft, and layoffs [3] - Cost reduction initiatives, particularly in line-haul transportation and production efficiency, are expected to support profit margins in Q2 [3] Group 4: Strategic Partnerships - The market is looking forward to updates on the multi-year partnership agreement signed earlier this year between FedEx and Amazon, where FedEx will handle the delivery of certain large packages for Amazon [4] - This comes as FedEx's competitor, UPS, has decided to reduce its business volume with Amazon [4]

Core Viewpoint - FedEx is set to report its Q2 FY2026 earnings on December 18, with expectations of adjusted earnings per share (EPS) at $4.09 and revenue at $22.8 billion, following two previous quarters of exceeding market expectations [1] Group 1: Financial Performance Expectations - FedEx management anticipates a revenue growth of 4% to 6% year-over-year for FY2026, with unadjusted EPS expected between $14.20 and $16.00, and full-year adjusted EPS projected between $17.20 and $19.00 [1] - The company expects to incur a $1 billion loss this year due to trade disruptions caused by tariffs, including increased customs costs and a decline in shipping volumes, particularly between the U.S. and China [1] Group 2: Seasonal Demand Impact - Strong demand from the holiday shopping season is expected to boost FedEx's Q2 performance, with management indicating that seasonal results will remain moderately strong [2] - The upcoming quarterly EPS is anticipated to exceed last year's $4.05 [2] Group 3: Cost Reduction and Efficiency - Ongoing uncertainties related to tariffs and persistent high inflation have negatively impacted consumer confidence and growth expectations, leading to a decline in FedEx's performance [3] - The DRIVE program, launched in Q2 FY2023, aims to enhance long-term profitability through cost-cutting measures, which include reducing flight frequencies, grounding certain aircraft, and layoffs [3] - Cost reduction initiatives, particularly in line-haul transportation and production efficiency, are expected to support profit margins in Q2 [3] Group 4: Strategic Partnerships - The market is looking forward to updates on FedEx's multi-year partnership agreement with Amazon, which involves FedEx delivering certain large packages for Amazon [4] - Recently, FedEx's competitor UPS has decided to reduce its business volume with Amazon, potentially benefiting FedEx's position in the market [4]

Core Viewpoint - FedEx is set to report its Q2 FY2026 earnings on December 18, with expectations of adjusted EPS at $4.09 and revenue at $22.8 billion, following two previous quarters of exceeding market expectations [1] Group 1: Financial Performance Expectations - FedEx management anticipates a revenue growth of 4% to 6% year-over-year for FY2026, with unadjusted EPS expected between $14.20 and $16.00, and full-year adjusted EPS projected between $17.20 and $19.00 [1] - The company expects to incur a loss of $1 billion this year due to trade disruptions caused by tariffs, including increased customs costs and a decline in shipping volumes, particularly between the U.S. and China [1] Group 2: Seasonal Demand Impact - Strong demand from the holiday shopping season is expected to boost FedEx's Q2 performance, with management indicating that seasonal results will remain moderately strong [2] - The upcoming quarterly EPS is anticipated to exceed last year's $4.05 [2] Group 3: Cost Reduction and Efficiency - Ongoing uncertainties related to tariffs and persistent high inflation have negatively impacted consumer confidence and growth expectations, leading to a decline in FedEx's performance [3] - The DRIVE program, launched in Q2 FY2023, aims to enhance long-term profitability through cost-cutting measures, including reducing flight frequencies, grounding certain aircraft, and layoffs [3] - Cost reduction initiatives, particularly in line-haul transportation and production efficiency, are expected to support profit margins in Q2 [3] Group 4: Strategic Partnerships - The market is looking forward to updates on the multi-year partnership agreement signed earlier this year between FedEx and Amazon, where FedEx will handle the delivery of certain large packages for Amazon [4] - Recently, FedEx's competitor UPS has decided to reduce its business volume with Amazon, potentially benefiting FedEx's position in the market [4]

Economic Data Releases - The convergence of major economic releases on Tuesday, including the November jobs report, retail sales, and PMI data, could significantly influence market direction heading into year-end [1][3] - The November jobs report will provide insights into employment trends, including nonfarm payrolls, unemployment rate, and wage growth, which are critical for assessing consumer spending capacity [1] - October retail sales data will be analyzed for evidence of consumer spending resilience during the holiday shopping season [1] - PMI releases will offer forward-looking perspectives on business activity in both goods-producing and services sectors [1] Inflation Reports - The November CPI report on Thursday will be crucial for understanding whether inflation pressures are moderating or remaining elevated, impacting the Fed's policy path [4] - Both headline and core CPI readings will be scrutinized, particularly energy prices, housing costs, and services inflation, which significantly influence overall price trends [4] - The Core PCE Price Index on Friday will provide the Fed's preferred inflation measure, offering final perspectives on October price trends [8] Company Earnings Insights - Micron's earnings report on Wednesday will provide insights into memory chip demand across various sectors, including data centers and automotive applications, amid concerns about AI infrastructure investment sustainability [5] - FedEx's earnings will offer insights into package volumes and e-commerce trends, serving as leading indicators for economic health [6][7] - Nike's earnings will assess athletic apparel demand and international market performance, particularly in China [7] - Accenture's results will provide perspectives on corporate consulting demand and IT services spending, indicating business confidence and investment intentions [7]

Economic Data Release - Several key economic reports are scheduled for release this week, including employment levels, retail sales, and inflation data, which are crucial for assessing the economic landscape and guiding Federal Reserve interest rate decisions [2][4][5] - The Bureau of Labor Statistics will release November employment data, alongside October retail sales and September business inventories, providing insights into consumer demand and labor market conditions [4] Earnings Reports - Micron Technology is set to report earnings this week, following a significant stock surge of over 200% in the past year, highlighting the ongoing interest in the artificial intelligence sector [7] - Nike's earnings report will reflect its successful turnaround efforts, although the company has warned that tariffs may still impact its profitability despite recent sales growth [8] - FedEx will also report earnings, having reinstated its full-year outlook with a forecast of 4% to 6% annual revenue growth, indicating resilience despite tariff challenges [10] Consumer Insights - Additional earnings reports from companies like CarMax, General Mills, Conagra, Darden Restaurants, Birkenstock, and Carnival will contribute to understanding consumer health and spending patterns [9] - The upcoming Consumer Price Index (CPI) report will shed light on inflation trends and the impact of tariffs, which is closely monitored by the Federal Reserve as it plans for 2026 [5]