We just covered Bill Gates’ 2026 Portfolio: Top 10 Stocks to Buy. FedEx (NYSE:FDX) ranks #9 (see the Bill Gates’ 2026 Portfolio: Top 5 Stocks to Buy).
FedEx (NYSE:FDX) shares are up 46% over the past year. But can it run more? The company is executing a major efficiency plan (DRIVE) to reduce billions in costs and increase margins with fewer flights, using automation and network consolidation. Despite short-term volatility, global e-commerce is positioned to expand and FedEx (NYSE:FDX) will benefit from increasing package volume growth.
Another growth catalyst is FedEx’s (NYSE:FDX) plan to spin off its Freight segment. Separating the higher-margin LTL business could unlock value through a higher standalone valuation, while allowing FedEx to focus on improving efficiency in its Express and Ground operations.
The London Company Large Cap Strategy explained in its Q4 letter why they remain attracted to the stock. (Click Here to Read The Letter In Detail)
While we acknowledge the potential of FDX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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