Here's Why Investors Should Give FedEx Stock a Miss Now

FedEx FDX is grappling with challenges arising from increased operating expenses, which are adversely impacting the company’s performance, making it an unattractive choice for investors’ portfolios.Let’s delve deeper.FedEx: Key Risks to WatchSouthward Earnings Estimate Revision: The Zacks Consensus Estimate for current-year earnings has moved 2.4% south in the past 60 days. For the next year, the consensus mark for earnings has been revised 1.04% downward in the same time frame. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.Image Source: Zacks Investment ResearchDim Price Performance:  The company’s price trend reveals that its shares have dropped 21% year to date compared to the Transportation - Air Freight and Cargo industry’s 20.5% rise.Image Source: Zacks Investment ResearchWeak Zacks Rank: FedEx currently carries a Zacks Rank #4 (Sell).Headwinds: FedEx continues to face significant pressure on its bottom line due to elevated operating costs. In the third quarter of 2025, operating expenses rose 2% year-over-year, driven by a staggering 57% increase in business optimization costs and a 2% rise in labor expenses. While the company frames these outlays as investments in long-term efficiency, the lack of immediate payoff raises concerns about the effectiveness of its cost-cutting strategy.Geopolitical uncertainty, tariff woes and higher inflation continue to hurt consumer sentiment and growth expectations. FedEx Freight segment operating results decreased during the quarter due to lower fuel surcharges, reduced weight per shipment and fewer shipments, partially offset by higher base yield.Stocks to ConsiderInvestors interested in the Transportation sector may consider Copa Holdings CPA and Ryanair RYAAY.CPA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.CPA has an expected earnings growth rate of 14.3% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 5.5%. Shares of CPA have risen 22.8% year to date.RYAAY currently carries a Zacks Rank of #2 (Buy).RYAAY has an expected earnings growth rate of 30.5% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering an average beat of 46.6%. Shares of RYAAY have rallied 32.1% year to date.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks