Jim Cramer is bullish on the newly public FedEx Freight Holding Company (FDXF) because he believes the business was undervalued and underappreciated while buried inside parent FedEx. As FedEx Freight officially began trading independently on June 1 under the ticker FDXF, Cramer said the company “could be a true winner” after suffering from “not-so-benign neglect” inside the larger organization.
The bullish sentiment stems from the idea that FedEx Freight operates in the highly profitable less-than-truckload (LTL) trucking market, where competitors such as Old Dominion Freight Line (ODFL) command far richer valuation multiples than FedEx historically received. Analysts and investors believe the spinoff allows the freight business to finally be valued on its own merits instead of being bundled into FedEx’s broader express and parcel operations.
