FedExNYSE: FDX

FedEx beat expectations in its most recent quarter. The company is also considering shedding its freight operation.

Surprise positive earnings by FedEx (NYSE: FDX ) sent its stock soaring nearly 20% last week. The package delivery specialist easily beat Wall Street's fiscal fourth-quarter revenue and earnings estimates, helping to lift shares to one of its best one-day performances.

FDX stock has gained 21.3% since July 2023, slightly underperforming the S&P 500. Q4 report shows FDX beat on top and bottom lines, with cost-cutting initiative DRIVE progressing well. Strategic evaluation of Freight business suggests a spinoff could bring significant benefits to shareholders.

FedEx while long struggling with operational efficiency, shown in losing USPS contract to UPS, is leading to cost-cutting measures that helped revenue increase in Q4. Recent earnings report beats expectations, showing increased net income, revenue, and operating income, leading their stock to move higher this week. FedEx's valuation suggests undervaluation compared to sector, with potential for significant upside if turnaround continues successfully.

It was a flat week at the end of a flat month for Wall Street as well as the CE 100 Index. The week ending June 28 saw a slight gain in value with a 0.4% uptick led by gains in the “Move,” “Banking” and “Enablers” pillars.

Volume improvement is on the way for package delivery companies. The pricing environment remains supportive for revenue growth.

Warren Buffett is widely known as one of the best value investors of all time. However, there is more that goes on in his thought process than just value.

FedEx stock broke out of a base following the company's earnings report. And a financial company's annual profits are expected to grow 167%.

Unexpected catalysts are driving the share prices of some previously beaten down stocks sharply higher, presenting a buying opportunity for investors. Surprise earnings beats, new partnerships and takeover rumors are lifting the share prices of several well-known companies that had fallen on hard times.