FedEx Reports Earnings Tuesday. Is the Delivery Giant a Buy?

Impact · against what's priced in

The news is largely neutral for Amazon as its LTL expansion is a logical progression of its logistics strategy, while for FedEx, the spin-off of its freight unit removes a structural drag on earnings. The primary catalyst remains the upcoming earnings report, where guidance for $5.80 EPS will be tested against a higher-for-longer interest rate environment.

AMZN+0.00

Doesn't touch the price's assumptions

The price assumes

North America retail margin expansion from regionalization, robotics and same-day density

While Amazon is opening its LTL network to outside businesses, this incremental logistics expansion does not materially alter the core drivers of AWS growth or the retail margin expansion already baked into the price.

What AMZN's price assumes · Feb 24

• FDX▲400%
• shipping▲222%
• fed▲136%
• rates
• earnings
• AMZN
• guidance