FedEx's freight business puts profit outlook at risk, analyst says
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FedEx's shares fell after J.P. Morgan downgraded the company from overweight to neutral, citing concerns over slower freight demand impacting earnings. Analysts worry that FedEx's optimistic earnings guidance may be too high, especially with competition increasing and shippers resisting higher rates. FedEx expects adjusted earnings between $17.20 and $19 per share, but operational challenges and the cost of spinning off its freight business could further affect its valuation. The stock has dropped 14.4% in 2025, contrasting with the S&P 500's 14.6% gain.
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