CNBC’s Jim Cramer told investors Monday that while the market has yet to overcome the challenges that threaten to create a recession, FedEx shares could withstand the turmoil.
“You might think that FedEx would be a helpless victim of high gas prices, a potential plateau for e-commerce, in [Federal Reserve]- forced deceleration. That would be wrong. This company is taking control of its own destiny. … I think you could do a lot worse, ”he said.
The host of “Mad Money” said that while FedEx has struggled with supply chain disruptions and has performed as well as it did during the heyday of the pandemic, the company is going to rise.
According to Refinitiv estimates, FedEx reported mixed results in its last quarter last week, slightly outpacing gains but no revenue. The company also issued a cheerful year-round guide, projecting an increase in adjusted earnings.
The transportation company also increased its dividend from 75 cents to $ 1.15.
“Companies don’t make a 53% dividend increase when they worry about making it next quarter,” Cramer said.
“Don’t forget, this is a market that only values profitable companies that reward their shareholders with dividends and repurchases,” he added.
Shares of FedEx fell 1.14% on Monday.
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