Cramer Urges Buying FedEx, FedEx Freight After 10% and 27% Stock Drops
Updated
Updated · CNBC · Jul 8
Cramer Urges Buying FedEx, FedEx Freight After 10% and 27% Stock Drops
3 articles · Updated · CNBC · Jul 8
Summary
FedEx has fallen about 10% from its June 15 high and FedEx Freight 27% from its June 9 peak, prompting Jim Cramer to call both stocks buys at current levels.
FedEx's selloff followed what Cramer said was a misunderstood quarter: revenue and profit beat expectations, while margins looked weaker because fuel surcharges lifted sales without adding profit.
FedEx Freight, spun off on June 1, is facing what Cramer described as typical post-spinoff selling, even though its first standalone report topped expectations on revenue and operating income.
Cramer said FedEx's new calendar-year reporting schedule and its history of conservative guidance likely added to Wall Street confusion, while FedEx Freight should benefit over time as the freight market recovers.