Investopedia: At FedEx, Fundamentals Don't Seem To Matter

It is interesting to me that Wall Street seemingly ignores some of the big problems at FedEx (low free cash margins, high ongoing capex needs, mediocre returns on capital) in favor of its charms as a leveraged play on economic growth. I don't doubt the value of FedEx's expensive-to-replicate global infrastructure, nor the potential to wring better performance from international operations, but it feels like that has been the story at FedEx for a long, long time.

Decent Third Quarter Results  
All things considered, FedEx did pretty well in its fiscal third quarter. Revenue rose 9%, more or less in line with most analyst estimates, with 8% growth in the large Express business boosted by 14% growth in Ground and 10% growth in Freight. Volumes were a mixed bag (down 4% in domestic Express, down 1% in International Priority but up 2% in Freight and 5% in Ground), but pricing was pretty strong across the board.

Read more here:
http://stocks.investopedia.com/stock-analysis/2012/At-FedEx-Fundamentals-Dont-Seem-To-Matter-FDX-UPS-ODFL-ATSG-AAWW0323.aspx