FDX Stock: FedEx Corporation Has Plenty Of Catalysts To Drive Share Price Higher

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FedEx Corporation (NYSE:FDX) is in great shape to capitalize on the meteoric rise of online shopping, Washington’s tax reform plans, and global economic growth.

That’s according to BK Asset Management analyst Boris Schlossberg, who remains firmly bullish on the stock heading into 2018.

While FedEx’s dividend remains relatively low compared with chief rival UPS, he sees plenty of room for upside ahead. Schlossberg explained his case to CNBC this week:

“There could be a situation where with tax reform they have better growth and they could decide to increase their dividend, which I think is going to be a nice little benefit going forward,” he said Friday on the “Trading Nation” segment of CNBC’s “Power Lunch.”

This, in addition to the “general global growth” picture that Schlossberg believes looks positive, could give the stock the boost it needs to add on to the 12 percent rally the stock has seen in the last month. “If you have [the tax plan] in addition to the general global growth, … it could give very good hope for at least the next six months forward,” he said.

Along with those factors, Schlossberg also loves FDX’s exposure to the fast-growing e-commerce industry. This holiday season has seen record sales on that front, and it’s hard to imagine that trend changing any time soon.

The analyst’s bullish call comes just ahead of FedEx’s upcoming earnings report next Tuesday, December 26.

FedEx Corporation shares rose $7.86 (+3.24%) in premarket trading Wednesday. Year-to-date, FDX has gained 35.00%, versus a 22.27% rise in the benchmark S&P 500 index during the same period.

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