FedEx Corporation FDX is taking a hit from Omicron-induced spike in coronavirus cases and adverse weather conditions across the United States.
Omicron is wreaking havoc in the United States, with the country seeing a surge in hospitalizations and an alarming number of COVID-19 cases on a daily basis.
FDX said that the surge in coronavirus cases has caused a “temporary shortage of available crew members and operational staff” in its Express air network. Severe winter weather in the United States is also weighing on its operations. To minimize delivery delays, the company is implementing contingency plans and adjusting operations.
Effective Jan 10, FedEx is set to resume pick-up for International Priority Freight, which was paused. Deferred and Premium Domestic FedEx Express Freight, and International Economy Freight pick-up is planned for resumption on Jan 13.
FedEx Corporation Price
While the pandemic-driven rise in online shopping is boosting FedEx’s shipment volumes, it is also straining its logistics networks and causing shipment delays.
However, strong package volumes and higher pricing are driving FedEx’s growth, as reflected in the company’s second-quarter fiscal 2022 results. Higher revenues across all segments, owing to increased revenue per package, are contributing to FDX’s top-line growth.
Zacks Rank & Other Key Picks
FedEx carries a Zacks Rank #2 (Buy). Some other stocks within the broader Transportation sector that investors can consider are as follows:
ArcBest Corporation ARCB flaunts a Zacks Rank #1 (Strong Buy). The company has a stellar earnings surprise history. It has outperformed the Zacks Consensus Estimate for earnings in each of the preceding four quarters, the average surprise being 27.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of ArcBest have surged more than 100% in a year’s time.
Expeditors International of Washington EXPD carries a Zacks Rank #1. The company’s earnings have outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 29.1%.
Shares of Expeditors have appreciated more than 36% in a year’s time.
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