CNBC’s Jim Cramer on Monday told investors that while the market has yet to overcome the challenges threatening to create a recession, FedEx stock might be able to weather the turbulence.
“You might think FedEx would be a helpless victim of high gas prices, potential e-commerce plateau, a [Federal Reserve]-mandated slowdown. That would be wrong. This company’s taking control of its own destiny. … I think you could do a lot worse,” he said.
The “Mad Money” host said that while FedEx has struggled with supply chain disruptions and performing as well as it did during the height of the pandemic, the company is on the up and up.
FedEx reported mixed results in its latest quarter last week, beating slightly on earnings but missing on revenue, according to Refinitiv estimates. The company also issued a cheerful full-year guidance, projecting an increase in adjusted earnings.
The transportation company also raised its dividend from 75 cents to $1.15.
“Companies don’t put through a 53% dividend boost when they’re worried about making their next quarter,” Cramer said.
“Don’t forget, this is a market that only values profitable companies that reward their shareholders with dividends and buybacks,” he added.
Shares of FedEx fell 1.14% on Monday.
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