Autonomous Trucks
StefonlintonThe recent bankruptcy of Yellow Corporation (YELL) has raised a red flag across the North American freight industry. Of course, Yellow's bankruptcy, if it results in a permanent business shutdown, benefits FedEx through potential labor pool increases and sales growth. Historically, Fedex's sales growth, its stock price, and its operating margin closely reflect changes to the Manufacturing PMI. Air transportation costs are also strongly associated with jet fuel prices, which have fallen substantially since last year. Looking forward, I expect FedEx's sales to continue to contract by around 10% over the coming two years from its TTM level.