Stephen Weiss spoke on CNBC’s “Fast Money Halftime Report” about FedEx Corporation (NYSE: FDX), which traded sharply lower on Wednesday after an earnings miss.
Weiss said the Street knew FedEx is going to miss, but not this bad. Labor costs and shortage are the main concern for the company, but Weiss expects the labor issues are going to loosen up now that we are done with the summer. He has cut his position right after the call when the stock was trading $6 lower, but he decided to add to the position on Wednesday.
See Also: Analysts Cut FedEx Price Targets After ‘Disappointing’ Q1 Results
For him, the story hasn’t changed. It has only been pushed back for a couple of quarters. He is staying with the stock and he is going to continue to add to his long position as the stock stabilizes.
Weiss expects FedEx to perform better than United Parcel Service, Inc. (NYSE: UPS) going forward. Union discussions coming up for UPS and they’re going to be much tougher than going out and hire people. FedEx wasn’t making money on the Amazon deal, so it got rid of it. UPS now has Amazon and it’s going to be a problem for it because it’s a low-margin business that takes a lot of capacity.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.