Stephen Weiss talked about CNBC’s “Fast Money Halftime Report” as regards FedEx Corporation (NYSE: FDX), which traded sharply lower on Wednesday after missing out on profits.
Weiss said the street knew FedEx would miss, but not so much. Labor costs and scarcity are the company’s main concerns, but Weiss expects labor problems to ease as we finish summer. He lowered his position immediately after the call when the stock traded $6 lower, but decided to expand the position on Wednesday.
The story has not changed for him. It’s only been pushed back a few quarters. He will stick with the stock and will continue to extend his long position as the stock stabilizes.
Weiss expects FedEx to outperform United Parcel Service, Inc. (NYSE:UPS) in the future. Union discussions are coming for UPS and they will be much harder than people assume. FedEx didn’t make money off the Amazon deal, so he got rid of it. UPS now has Amazon and that’s going to be a problem because it’s a low-margin company that takes up a lot of capacity.
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