Businesses and consumers have been dealing with supply-chain issues for some months. Because of Covid-19’s sporadic impact on the global economy, companies and consumers have seen an increase in transportation costs, a decrease in inventory, and an increase in inflation.
According to the Institute for Supply Management, businesses will have to place equipment orders one month early starting in June 2022. Furthermore, according to Federal Reserve statistics, companies’ delivery wait times are becoming longer.
But that’s not all terrible for those involved in the supply chain. FedEx (NYSE: FDX) has established a partnership with FourKites to make supply chain management simpler.
Naturally, FedEx is a major logistics company, delivering packages and deliveries to companies and consumers all over the world. FourKites is a supply chain visibility tool that allows users to see farther down the chain. Tracking information and delivery date aren’t all it has to provide. Detailed information on warehouses, retail locations, and other areas will be available to companies using this technology.
When it comes to supply chain data, more is always better,” stated ARC Advisory Group supply chain vice president Steve Banker. FedEx and FourKites’ relationship is remarkable because of the amount of data it will gather and the extent to which it may enhance expected arrival times and other aspects of delivery planning.
Its possible investors are fascinated, but it does not seem like FedEx stock will gain soon. After rising 0.3 percent on Tuesday, shares were unchanged in premarket trade on Wednesday.
S&P 500 SPX +2.45 percent gained a total of 2.5% on the day. A 1.4 percent drop in S&P 500 and a 1.2 percent drop in Dow Jones Industrial Average futures occurred on Wednesday.
Investors are focused on something else. On June 23, the markets will close, and FedEx will release its fiscal fourth-quarter results. A jump in earnings per share to $6.88 is predicted, up from $5.01 last year.
The cost of shipping has gone up. That’s a good thing for the business. FedEx (FDX) is another company that investors will be watching closely in the next year. Earnings for fiscal 2023 are now estimated to be about $22 per share, up roughly 10% from the predicted results for fiscal 2022.
It’s not up, but FedEx has done better than the market as a whole. By the close of trading on Wednesday, shares had plummeted by 11%, outperforming the S&P 500’s 20% plunge.
Investors, on the other hand, believe that everything will eventually return to normal. The stock is only worth 11 times what analysts expect it to earn in 2023. There was an average of around 14 times every year in the last several years.
Currently, there is a lot of activity in logistics. Investors can set aside some time to consider how technology might improve FedEx’s performance in the future.