On Tuesday, Bank of America dubbed FedEx the top freight picker and claimed its shares were selling at a discount.

“We see significant tailwinds for FDX, led by pricing gains, margin improvement (including TNT integration), continued ecommerce growth, and the return of [business-to-business] volumes,” said Ken Hoexter of BofA.

FedEx has been added to Bank of America’s “US1” list of top picks. The firm reiterates its buy rating on the stock and maintains its price target of $372, representing a 26.5 percent increase over the stock’s closing price of $293.99 on Monday.

During the pandemic, e-commerce demand increased, and a significant increase in package volume drove FedEx’s performance, according to BofA. But, according to FedEx, the demand for digital shopping isn’t going away.

“The company believes the pull-forward of e-commerce demand is unlikely to reverse post-COVID, with FedEx CMO Brie Carere expecting business-to-consumer shipments to drive 88 percent of future growth,” Hoexter said.

FedEx will continue to benefit from favorable pricing power, according to BofA, until at least fiscal year 2023.

According to BofA, the courier stock is down 6.6 percent in June, but that means shares are currently cheap for investors.

FedEx shares are trading near the low end of their historical range, according to the company. Its shares are also discounted when compared to rival UPS’s stock, based on BofA’s earnings-per-share estimates for each company for fiscal year 2022.

Despite trading lower in June, FedEx shares are up more than 13% in 2021 and more than 118 percent in the previous year.

“We see significant tailwinds for FDX, led by pricing gains, margin improvement (including TNT integration), continued ecommerce growth, and the return of [business-to-business] volumes,” said Ken Hoexter of BofA.

FedEx has been added to Bank of America’s “US1” list of top picks. The firm reiterates its buy rating on the stock and maintains its price target of $372, representing a 26.5 percent increase over the stock’s closing price of $293.99 on Monday.

During the pandemic, e-commerce demand increased, and a significant increase in package volume drove FedEx’s performance, according to BofA. But, according to FedEx, the demand for digital shopping isn’t going away.

“The company believes the pull-forward of e-commerce demand is unlikely to reverse post-COVID, with FedEx CMO Brie Carere expecting business-to-consumer shipments to drive 88 percent of future growth,” Hoexter said.

FedEx will continue to benefit from favorable pricing power, according to BofA, until at least fiscal year 2023.

According to BofA, the courier stock is down 6.6 percent in June, but that means shares are currently cheap for investors.

FedEx shares are trading near the low end of their historical range, according to the company. Its shares are also discounted when compared to rival UPS’s stock, based on BofA’s earnings-per-share estimates for each company for fiscal year 2022.

Despite trading lower in June, FedEx shares are up more than 13% in 2021 and more than 118 percent in the previous year.

BTIG promotes M&A

Company America is on the verge of an M&A boom in full bounce with the US economy and markets.

These companies are also saddled with potentially crippling debt and may soon be confronted with a dealmaking opportunity.

Julian Emanuel, BTIG’s chief equity and derivatives strategist, compared the current state of the stock market to the American television game show “Let’s Make a Deal,” in which contestants are offered deals and must decide whether to keep what they have or trade it for a potentially larger win (or loss).

One path leads to robust economic and earnings growth through at least 2023. Another path leads to “zonks,” which are favorable interest rates, credit spreads, and financial conditions that pose asymmetric risks of eventual deterioration.

Inflation, supply chain disruption, and labor market stress are lurking behind the third door. Emanuel is skeptical that the current inflation is a passing fad.

“Whether inflation proves ‘transitory’ or not, we continue to view the 39-year bull market in yields as having ended at last summer’s near-zero approach in the long run,” Emanuel said, noting that the Fed has made it clear that it will not allow negative interest rates (unlike Europe and Japan).

Hess, Carrier, and Marriott Vacations are among the companies BTIG screened for that have appealing characteristics for both buyers and sellers — that is, valuations that are rich enough for the companies to want to sell, but low enough that buyers believe they are still getting a good deal. Many are industrials, but there are also firms in energy, health care, consumer discretionary, and real estate.

The companies on the list are Russell 3000 components with market capitalizations of less than $50 billion whose shares have more than doubled since March 23, 2020. The list also includes Russell 3000 shares that have fallen by up to 15% over the same time period. They were also evaluated in terms of EPS growth, valuation, and debt.

This is a BTIG stock screen that is not based on any specific news or speculation about potential mergers and acquisitions.