PREVIEW: FedEx accelerates heading into report due after the bell

Shares of FedEx FDX.N up 0.8% at $248.99 and rising for fifth straight session on Thurs with parcel delivery giant's fiscal Q3 results due after market close

For qtr ended in Feb, analysts expect FDX to post adj EPS of $4.54, up from $3.86 a yr-ago, on rev of $21.9 bln compared to $21.7 bln in Q3 2024, per LSEG data

In preview note on Tues, Citigroup lowered its PT to $317, saying as with much of the transports, investors seem fearful of potential impact of tariffs and increasingly concerned about downside risk to consumers and industrial activity

Earlier this month, JP Morgan reduced its PT to $323, saying it expects another tough qtr for FDX's freight unit based on soft industrial activity and adverse weather

In Dec, FDX announced the highly-anticipated spin-off of its less-than-truckload (LTL) freight division as co seeks to focus on its core business to compete more profitability with delivery rivals like United Parcel Services UPS.N

Of 33 brokerages covering FDX, recommendation breakdown is 21 "strong buy" or "buy", 10 "hold" and 2 "sell" recommendations; median PT of $316 implies ~27% upside to current levels

Including move on the session, FDX shares down ~11.5% YTD vs nearly 1% advance in the S&P 500 Industrials .SPLRCI and ~8% drop in Dow Jones Transport Average .DJT