FDX is at a cross roads. Quarterly results are expected today eve. FDX Valuation has corrected significantly and what a difference a year makes.
Although the valuation is attractive there a few things to consider. FDX is operating with some debt and most Of this debt over last 10 years was used to buy back shares. Risks are related to technology disruption is AMZN emerging as a major competitor going forward and also Uber and other startups looking to disrupt the transportation and delivery market.
Key question is how strong is FDX moat and how well can then manage the business and innovate on this competitive landscape. As long as FDX and UPS were a duopoly the stock commanded a large premium multiple but looks like those days are gone.
I await on the sidelines with caution and follow this company.
https://www.cnbc.com/2019/06/24/fedexs-threat-rivals-amazon-and-uber-aim-to-slash-its-business.html
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