FedEx Stock (FDX) Named a 'Top Pick' for 2026 at Bank of America

The stock of Federal Express (FDX) has been upgraded and named a "Top Pick" for 2026 by Bank of America (BAC).Claim 70% Off TipRanks PremiumUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential Shares of FedEx, as the company is commonly known, have been upgraded to Buy from Hold at Bank of America. The company is well-positioned to benefit from cost reductions, network consolidation, and a potential recovery from a four-year downturn in freight shipments, says the bank. Analyst Ken Hoexter writes that the upgrade of FedEx is part of a broader shift in the bank's transportation strategy, with Bank of America bullish on "cyclical Transport stocks into 2026." Hoexter stresses that he expects a "freight recession" that began in 2022 to end this year. The Improving Outlook for FedEx The analyst also writes that demand for FedEx's shipping and logistics services should improve in 2026 as lower interest rates, infrastructure spending, and investment in data centres and power supply feed through the American economy. Hoexter raised his price target on FDX stock to $365 from $315, and named FedEx one of Bank of America's "top picks for 2026." He also said that FedEx is gaining momentum from its ongoing cost-cutting strategy and yield discipline. Bank of America also points to the planned June 2026 spinoff of FedEx Freight as a key catalyst for the shipping giant. Is FDX Stock a Buy? FedEx stock has a consensus Moderate Buy rating among 20 Wall Street analysts. That rating is based on 13 Buy, six Hold, and one Sell recommendations issued in the last three months. The average FDX price target of $315.05 implies 0.86% upside from current levels.