FedEx Corporation (FDX, Financial)
FedEx has been able to take advantage of increased e-commerce activity in 2020 as people have spent more time shopping at home. During the quarter, FedEx reported pricing improvement in both its freight and ground shipping units. FedEx air freight has also been able to capitalize on less competition as commercial airlines have drastically cut flights. On the company's most recent earnings call, management stated that the company is preparing for a peak like no other this holiday season as the pandemic continues to push more people to shop online. Before the pandemic, FedEx predicted the US would hit 100 million packages a day by 2026 and now they predict it will reach that number by 2023. FedEx could also benefit from a potential COVID-19 vaccine as the company manages 90 cold storage facilities and has experience in shipping temperature-sensitive products.
From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management fall 2020 market commentary.
