Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.
FedEx’s Difficult Decade
One of the market laggards of the past decade was delivery giant FedEx Corporation (NYSE: FDX).
The 2010s were a transformative decade for the delivery group. Booming demand for Amazon.com, Inc. (NASDAQ: AMZN) deliveries defined the decade. But while Amazon was heavily reliant on FedEx throughout most of the decade, it looks positioned to compete with FedEx in the 2020s.
In 2015, FedEx announced a $4.8 billion buyout of TNT Express as part of its initiative to expand into Europe. In late 2018, FedEx expanded its Ground last-mile delivery service to six days per week due to booming demand for Amazon deliveries. Ground expanded to seven days per week during the peak holiday season in 2019 and will continue to operate seven days a week in most areas in 2020.
Unfortunately, FedEx shares have taken a hit since June 2019 when the company announced it would not be renewing its $850 million contract with Amazon. Amazon, which accounted for 1.3% of all 2018 FedEx revenue, is expanding its own U.S. domestic delivery service and will now be a competitor for FedEx.
FedEx shares started the 2010s trading at around $83. FedEx shares traded mostly between around $70 and $100 throughout 2010 and 20111, hitting their low point of the decade at $64.07 in late 2011. The next several years were a huge success for FedEx investors as e-commerce deliveries exploded. The stock marched steadily higher with few interruptions, eventually peaking at $274.66 in early 2018. Unfortunately, that level would mark the highest point of the decade for FedEx.
The stock began to plummet as global trade started to decline in 2018. FedEx traded back down to as low as $137.78 in late 2019.
2020 And Beyond
After a lackluster 2010s, the 2020s are off to a disastrous start for FedEx. The stock recently broke below $100 for the first time since 2013, dropping all the way down to around $90 on coronavirus weakness.
FedEx has been a horrible investment over the past decade, but at least investors have been able to turn a small profit. In fact, $100 worth of FedEx stock in 2010 would be worth about $113 today, assuming reinvested dividends.
Looking ahead, analysts expect FedEx to rebound from its recent sell-off in 2020. The average price target among the 22 analysts covering the stock is $158.50, suggesting 73.2% upside from current levels.