Is FedEx Corporation (FDX) One of the Best Falling Stocks to Buy According to Analysts?

By Abdul Rahman | May 04, 2025, 6:01 PM

We recently published a list of 11 Best Falling Stocks to Buy According to Analysts. In this article, we are going to take a look at where FedEx Corporation (NYSE:FDX) stands against other best falling stocks to buy according to analysts.

Over the past two years, bulls have been in control, pushing US markets to new heights with each pullback. Major indices rallied to record highs as artificial intelligence emerged as a key investment theme, especially in the technology sector. Stocks also rallied amid expectations that the US Federal Reserve will cut interest rates on inflationary pressures subsiding significantly. The rally to record highs saw valuations get out of hand beyond historical norms.

A change of administration and policies in the US was always going to be the catalyst to sway investors to exit risky bets amid the premium valuations. Donald Trump’s taking over, waging a trade war against allies, and imposing stringent tariffs on imports into the US is the latest headwind that is sending US equity markets lower.

The S&P 500 is already down by about 6%, and the tech-heavy NASDAQ is down by about 8%. The pullbacks come on growing concerns that the tariff war fuelled by Trump could plunge the global economy into recession. Similarly, there are growing fears that the US Federal Reserve will refrain from cutting interest rates as inflationary pressures show signs of edging higher.

Consequently, the US equity market remains on edge, with stocks exposed to the tariff war pulling back by double-digit percentage points. The uncertainty around President Trump’s tariffs and policies is sure to heighten volatility in the markets, as was the case in his first term.

Trump’s announcement of tariffs on Chinese imports in 2018 and 2019 caused stocks to perform poorly, according to data from economists at the Federal Reserve Bank of New York. Fast forward, we are seeing a repeat of similar performance in 2025, but on a larger scale.

Nevertheless, a falling stock market will always present unique investment opportunities for investors with a high-risk tolerance. As prices come down, opportunities to invest in stocks trading at highly discounted valuations are increasingly cropping up.

″‘Buying the dip’ depends upon your timeframe,” says Richard Smith, CEO of investing tool RiskSmith. “If you can keep your money in the markets for at least a couple of years, this is a good dip to buy. You’ll likely be disappointed if you’re banking on the market reversing [soon] and heading back up to new highs.”

Although it’s unclear if the stock sell-off will steepen in the weeks to come, there are exceptionally safe, historically inexpensive, time-tested stocks worth buying on the dip. In line with Warren Buffett’s strategy of pursuing opportunities when there is a blood bath, the best stocks in a shaky market will always be those with a rare combination of quality and healthy potential for growth.

Our Methodology

To curate the list of the 11 best-falling stocks to buy according to analysts, we used the Finviz stock screener. We defined falling stocks as those trading within 0% to 10% of their 52-week lows. Using the Finviz stock screener, we got an aggregated list of stocks that fit our criteria. Next, we ranked these stocks in ascending order based on analysts’ upside potential (as of May 2). We have also mentioned the hedge fund sentiment around each stock, as of Q4 2024.

At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Is FedEx Corporation (FDX) the Best-Falling Stock to Buy According to Analysts?
A driver unloading packages from a van for a time-critical delivery.

FedEx Corporation (NYSE:FDX)

52 Week Range: $194.30 – $313.84

Current Share Price: $210.06

Analysts Upside Potential as of May 2: 34.80%

Number of hedge fund holders: 66

FedEx Corporation (NYSE:FDX), formerly Federal Express and FDX Corporation, is a leading American multinational specializing in transportation, e-commerce, and business services, headquartered in Memphis, Tennessee. FedEx Corporation (NYSE:FDX) holds a Moderate Buy rating from 19 analysts, with 14 buy, 3 hold, and 2 sell ratings. The 12-month average price target is $283.16, ranging from $200.00 to $365.00, reflecting a 34.80% increase from its current price of $210.06.

FedEx Corporation (NYSE:FDX) reported Q3 FY 2025 earnings of $4.51 per share, missing the $4.56 estimate. Revenue rose 2% YoY to $22.2 billion, with adjusted earnings of $1.09 billion, up from $970 million ($3.86 per share) a year prior. Despite the growth, results fell short of expectations. FedEx lowered its full-year EPS forecast to $15.15-$15.75 from $16.45-$17.45 and expects revenue to be flat or slightly lower, citing economic headwinds and cost pressures.

Raj Subramaniam, FedEx Corp. president and CEO, acknowledged the company’s improved profitability despite challenges, stating, “The FedEx team delivered improved profitability, while navigating a very challenging operating environment, including a compressed Peak season and severe weather events.” He praised the team’s efforts, adding, “I am proud of the team for executing on our transformation efforts while strengthening our value proposition and improving the customer experience.” Looking ahead, he emphasized FedEx’s commitment to customer support, saying, “We remain focused on supporting our customers amid the shifting macroeconomic environment.”

Overall, FDX ranks 8th on our list of best falling stocks to buy according to analysts. While we acknowledge the potential of FDX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FDX but that trades at less than 5 times its earnings check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

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