Cost reduction and efficiency improvement finally pay off! FedEx Corporation (FDX.US) stock price hits a new high, shaking off the identity of "tariff victims"

Notice that, thanks to the increasing confidence in cost-cutting efforts in the market, as well as the resilient economic backdrop expected to benefit the transportation industry, FedEx Corporation (FDX.US) stock closed at a historical high on Thursday, with the price likely to achieve six consecutive months of growth. The stock rose 1.7% on Thursday, closing at $319.93, surpassing the historical peak set in 2021. The stock also set a new all-time high intraday. In January, FedEx Corporation rose nearly 11%, rebounding about 60% from the low point caused by last year's tariff-induced chaos. Catalysts in recent weeks have come from management's optimistic outlook and a quarterly report indicating that the cost-cutting measures taken by the shipping giant are paying off. Strong economic data has also prompted investors to rotate funds from large tech companies to other sectors, including transportation. Citi analyst Ali Rosso said, "FedEx Corporation's tone has shifted, which is exciting for many. People see the potential for profit margin growth, although the potential for FedEx Corporation has been talked about for years, it now feels real." As an economic barometer, FedEx Corporation's business spans across industrial and consumer sectors, but due to the fading freight dividend during the pandemic and increasing competition from Amazon.com, Inc., its stock has been volatile for many years. "Tariff victims" In 2025, the trade war initiated by US President Trump led to a decline in business, which struck a blow to profitable freight from China to the US. The resistance brought by tariffs resulted in the stock underperforming the market in 2025. Rosso from Citi pointed out that the Fed's rate cuts and the decline in mortgage rates have benefited manufacturing and construction activities, and the expected higher tax refunds this year have added to the colors for this delivery company. Wall Street is optimistic about FedEx Corporation's plan to split its freight business. When Bank of America Corp upgraded the stock to a "buy" earlier this month, they mentioned this move and cost-cutting. The stock price of rival United Parcel Service Inc. (UPS.US) has also risen, but is still over 50% lower than the historical high set in 2022. In addition to being hit by tariffs, investors also punished the stock last year for UPS's plans to cut ties with Amazon.com, Inc.'s business. UPS stock received a slight boost on Tuesday, as the company forecasted full-year revenue to exceed analyst expectations, although the outlook for adjusted operating profit margin fell short of expectations.