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“Can FedEx’s Uptrend Stay Strong? Uncover the Risk Factors to Watch Out For

The transportation industry’s poster child, FedEx Corporation (NYSE: FDX), has been one of the best performers over the last few years. However, recent developments in the industry have put its long-term uptrend in jeopardy. As the world’s largest freight carrier, FedEx is highly exposed to the e-commerce industry, and growing competition in the sector has put them in a difficult position. The company’s new CEO, Raj Subramaniam, is likely aware of this as many of his prior efforts have been focused on strengthening the company’s competitive position. Subramaniam has implemented a number of changes to make FedEx a more competitive player in the industry, such as offering shorter times for both domestic and international deliveries. The company has also been moving towards offering more same-day and custom deliveries to its customers. Additionally, FedEx has made investments in its competing delivery services such as FedEx Ground and FedEx Freight to compete with the likes of Amazon for next-day delivery. However, these efforts may not be enough to overcome industry-wide trends that are working against FedEx. For instance, the rise of rival companies, such as UPS and DHL, which have been aggressively expanding their presences in the global marketplace. Additionally, advances in technology, such as drones and autonomous vehicles, are helping other companies to reduce their costs, creating stiff competition for FedEx. FedEx faces an uphill battle in its endeavor to remain a leader in the industry, and investors should pay close attention to the company’s share price performance. If FedEx’s competitive positioning continues to deteriorate, this could spell trouble for its long-term uptrend. As such, investors would be wise to ascertain whether or not Subramaniam’s efforts are enough to put FedEx ahead of the competition in the global transportation and logistics space.