FedEx Freight Holding Company, Inc.

Cambiar Opportunity Fund is retaining FedEx Freight Holding Company, Inc. (NYSE:FDXF), the pure-play less-than-truckload spinoff from FedEx Corporation, as one of two new spinoff positions added in the second quarter of 2026, according to the fund's Q2 2026 investor letter. The fund said it anticipates holding both new spinoff issues, FedEx Freight and Honeywell Aerospace, as well as their parent companies, rather than selling them as is typical for smaller spinoffs. FedEx Freight is the largest pure-play less-than-truckload transport company and has the potential for margin improvement as volumes in its key verticals improve, the letter stated. FDXF closed at $109.38 on September 30, 2026, giving it a $16.35 billion market capitalization, after a roughly 27.47% three-month pullback, and it has traded within a 52-week range of $107.67 to $200.00. The Cambiar Opportunity Fund gained 11.58% in the quarter but lagged the Russell 1000 Value Index's 13.87% gain, reflecting an underweight in technology, while 54 hedge fund portfolios held FDXF at the end of the second quarter.

FedEx Freight is entering public markets as a pure-play less-than-truckload carrier, targeting margin growth through pricing and efficiency even as shipment volumes decline. Fourth-quarter revenues rose 4.8% year over year to $2.4 billion, while average daily shipments fell 5.9% to 86.7 thousand, offset by an 11.5% increase in revenue per shipment to $415.22. Weight per shipment rose 3% to 948 pounds, and revenue per hundredweight increased 8.2% to $43.79. Management expects medium-term revenue growth of 4-6% and adjusted operating income growth of 10-12%, implying faster profit growth driven by operating improvements, with capital-expenditure-to-revenue ratio around 5%. The stock currently carries a Zacks Rank #3 (Hold), with a VGM Score of D and Momentum Score of F, suggesting a neutral near-term outlook.

FedEx Freight has entered the public market as a standalone freight company and joined the S&P 500, giving investors a clearer way to evaluate a business previously housed inside FedEx. The company is now a focused North American less-than-truckload carrier handling roughly 90,000 daily shipments across more than 365 locations with 30,000 vehicles and 40,000 team members. Management's medium-term targets include revenue growth of 4% to 6%, adjusted operating income growth of 10% to 12%, free cash flow above $1 billion, and free cash flow conversion above 90%. The spin-off allows FedEx Freight to direct resources toward freight-specific decisions without competing internally with parcel and express operations, but execution risk, exposure to the freight cycle, and elevated debt remain key challenges. The consensus price target for FDXF stock is $175, implying an upside of more than 17% from current levels, and the stock carries a Zacks Rank #3 (Hold).

US stock futures are drifting lower as investors weigh tighter financial conditions against mixed global growth signals, with E-mini S&P 500 and Nasdaq-100 contracts off by around 0.1% to 0.4%. A planned 25% US tariff on some Brazilian imports raises cost concerns for trade- and agriculture-linked companies, while US crude stockpiles and the Strategic Petroleum Reserve sit at multi-decade lows, potentially feeding through to fuel prices and household budgets. Among top movers, Abbott Laboratories jumped 10.71% after Q2 results eased medtech and nutrition worries, J.B. Hunt Transport Services climbed 8.01% on earnings and analyst target hikes, and FedEx Freight Holding Company gained 7.50% following fresh coverage highlighting freight sector momentum. On the losing side, AST SpaceMobile fell 17.04% after pricing US$1 billion of convertible notes, Nebius Group declined 13.90% on New York's hyperscale data center moratorium, and Bloom Energy dropped 13.64% amid short seller reports and scandium supply questions. Looking ahead, financials earnings from Fifth Third Bancorp, Truist Financial, Regions Financial, and Travelers Companies, along with global inflation readings including China Loan Prime Rate decisions and Canada CPI, will shape the next few sessions.

Jim Cramer expressed optimism about FedEx Freight Holding Company, Inc., the newly listed freight spinoff from FedEx, suggesting the stock has shaken off its post-spinoff blues and is poised to move higher. On his Mad Money show, Cramer highlighted that FedEx Freight is instantly the largest player in the less-than-truckload market, which he views as attractive as the freight business emerges from a multi-year bear market with reduced capacity. He also noted the benefits of independent management focused solely on improving service and growing the business. Bank of America raised its price target on the stock to $187 from $185 on June 26th, maintaining a Buy rating and increasing its 2027 earnings per share estimate to $5.41.

FedEx Freight Holding Company shares have slipped around 4.4% over the past month, and both Discounted Cash Flow and price-to-earnings checks now point to the stock trading below what those models suggest it may be worth. The agreed sale of FedEx's supply chain unit for about US$1.4 billion may support a clearer focus on higher value sectors and capital allocation, though execution risk around reshaping the business mix could still affect future cash flows. A Discounted Cash Flow model estimates an intrinsic value of about $187 per share, roughly 19.4% above the current price, while the stock's price-to-earnings ratio of about 25 times compares with an industry average of roughly 42.7 times in the Transportation sector. The broader valuation score sits in the middle of the range, so FedEx Freight Holding Company does not screen as a straightforward bargain across every check, leaving the stock in a grey zone even as both cash flow and earnings measures indicate undervaluation.

Goldman Sachs initiated coverage of FedEx Freight Holding with a Buy rating and a $186 price target, implying roughly 23% upside from current levels. The brokerage cited the newly independent less-than-truckload carrier's potential to improve profitability, pricing power and cash generation following its spin-off from FedEx. Goldman expects the company to improve its operating ratio toward a medium-term target of 85%, supported by pricing gains, productivity initiatives, technology investments and stronger freight volumes. The firm forecasts revenue growth of 4% to 6% annually through 2029 and sees earnings per share rising to $4.65 in fiscal 2027, $5.80 in 2028 and $6.95 in 2029. Goldman also highlighted FedEx Freight's scale advantages, noting its nationwide network, large terminal footprint and ability to generate at least $1 billion in free cash flow over the medium term, with management expected to prioritize debt reduction before introducing dividends in late 2026 or early 2027 and share repurchases in 2027.

Bank of America raised its price target on FedEx Freight Holding Company to $187 from $185 while maintaining a Buy rating, following the company's first post-spinoff earnings release. FedEx Freight reported fourth-quarter fiscal 2026 revenue of $2.4 billion, up 4.8% year-over-year, and adjusted operating income of $363 million, a 23.9% decline from the prior year. The firm also raised its calendar 2027 earnings per share estimate to $5.41. For the seven-month transition period ending December 31, 2026, the company projects revenue growth of 4% to 6% and operating income between $475 million and $515 million.

FedEx Freight Holding Company guided for $605 million to $645 million in adjusted operating income on revenue growth of 4% to 6% for the seven-month transition period ending December 31, 2026, compared with the same period in 2025 on a stand-alone basis. The company, which recently completed its spin-off and began trading under the ticker FDXF, reported fourth-quarter revenue of $2.4 billion, a 5% year-over-year increase, with adjusted operating income of $363 million and a 15% adjusted operating margin. Revenue per shipment rose 11.5% in the quarter, driven by higher fuel surcharges and increased weight per shipment, partially offset by lower volumes. Management flagged approximately $80 million in separation-related costs during the quarter and expects a roughly 120-basis-point headwind from ongoing Transition Service Agreements, translating to about $65 million, with total transition-related costs potentially reaching $700 million to $750 million before easing in the second half of 2027. About 60% of the revenue growth and 75% of the adjusted operating income during the transition period are expected to be weighted toward the four months ending September 30.

FedEx Freight, now an independent company after spinning off from FedEx Corp. on June 1, forecast 4% to 6% revenue growth for the remaining seven months of the fiscal year, with adjusted earnings per share of $2.40 to $2.60 and an operating margin of 9% to 9.5%. The less-than-truckload carrier reported fiscal fourth-quarter revenue of $2.4 billion, a 4.8% increase driven by higher fuel surcharges and weight per shipment, while adjusted operating income fell 24% to $363 million. Average daily shipments declined 5.9% to 86,700, but weight per shipment rose 3% to 948 pounds and revenue per shipment jumped 11.5% to $415.22. FedEx Freight is the largest LTL company in the United States with a 17% market share, 355 service centers, and about 30,000 vehicles. The company's stock price dipped nearly 2% during the day and was down 1.2% in afterhours trading at $156.68 per share.

FedEx Freight Holding Company, Inc. is set to report its fourth-quarter earnings on Thursday, June 25, after the market closes, with analysts expecting earnings per share of $1.48. The company, a leading less-than-truckload carrier with a market capitalization of $24.8 billion, spun off from FedEx Corporation and began trading as an independent public company on June 1. Its immediate inclusion in the S&P 500 and Dow Jones Transportation Average has boosted visibility and attracted institutional demand. Analysts hold a Moderate Buy rating on the stock, with a mean price target of $171.33, implying a 2.9% premium from current levels. Earnings are projected to reach $3.93 per share in fiscal 2026 and grow nearly 21% year over year to $4.75 in fiscal 2027.

Jim Cramer highlighted FedEx Freight Holding Company, Inc. as a new position in his trust, citing the company's ability to capitalize on the e-commerce boom and a strong economy. He noted that freight stocks have been performing well as e-commerce continues to take market share from brick-and-mortar retail, and that FedEx Freight, the recent less-than-truckload spinoff from FedEx, is uniquely positioned to benefit. Cramer also pointed to the company's cost-cutting efforts, market share gains, and the potential impact of self-driving trucks as an added bonus. He reiterated his confidence in the stock during a later episode, calling it a spinoff that could become one of the best operators in the world.

FedEx Corp announced a 5% increase in its annual dividend rate following the spin-off of FedEx Freight. The new annualized dividend of $4.88 applies from June through December 2026, with a quarterly cash dividend of $1.22 per share payable July 7. Interim CFO Claude F. Russ said the increase and the Freight separation reflect a disciplined capital allocation strategy. FedEx also completed the separation of FedEx Freight Holding Company, which now trades independently on the NYSE, with shareholders receiving one Freight share for every two FedEx shares held. Additionally, Mark A. Edmunds, former Deloitte vice chairman, was appointed to the FedEx board.

FedEx reports its fiscal fourth-quarter results on Tuesday, June 23, after the market closes, marking its first update since the Federal Reserve signaled a possible rate hike and the company completed the spin-off of its less-than-truckload freight business into a separate public company. The stock has surged this year but pulled back last week amid hawkish Fed signals and Amazon's entry into the LTL freight market. In its fiscal third quarter, revenue rose 8% to $24 billion and adjusted earnings per share climbed 16% to $5.25, driven by business-to-business shipping and cost cuts from the Network 2.0 program. For the fourth quarter, FedEx guided for adjusted earnings per share of about $5.80, which would be its strongest quarter of the year. At about $326, the stock trades at roughly 17 times the midpoint of management's adjusted earnings guidance, with a dividend yield of about 1.5% after a recent 5% increase to an annualized $4.88.