Analysis on GARP with strong economic moats, Moat Investing

Moat Investing

We are a group of experienced investors that like to dig deeper into stocks to find growth stories at a reasonable price with strong economic moats. We also aim to conduct high-quality analysis by doing deep dive on valuations, key business drivers, risk/reward, and different future scenarios.

Analysis on GARP with strong economic moats

GARP with strong economic moats

Equity Bottom-Up

<ul>
<li>FedEx has been on a downtrend after releasing lower than expected Q1 2021 results, with the bottom line damaged by $450m YoY by labor shortages and related operational inefficiencies.</li>
<li>The company aims to hire other 90k workers for the peak season ahead, raising questions on additional inefficiencies caused by extra volume.</li>
<li>FedEx’s top line is on the increase, but a surge in costs is hurting margins.</li>
<li>We expect more sell pressure in the months ahead, putting FedEx in the long-term buy region.</li>
</ul>


FedEx has been on a downtrend after releasing lower than expected Q1 2021 results, with the bottom line damaged by $450m YoY by labor shortages and related operational inefficiencies.
The company aims to hire other 90k workers for the peak season ahead, raising questions on additional inefficiencies caused by extra volume.
FedEx’s top line is on the increase, but a surge in costs is hurting margins.
We expect more sell pressure in the months ahead, putting FedEx in the long-term buy region.


FedEx: Ground Division Is Getting Beaten By Post-COVID Operational Inefficiencies

FedEx Corp

FedEx: Ground Division Is Getting Beaten By Post-COVID Operational Inefficiencies