FedEx Freight, a major logistics player, will begin trading under its own ticker, FDXF, starting Monday, June 1, marking a long-anticipated spinoff. This move lets investors directly access one of the largest less-than-truckload freight companies in the U.S. Here’s what the new stock is worth, how it compares to its peers, and the factors that could boost its price.
FedEx Freight competes with Old Dominion Freight Line and XPO in the less-than-truckload (LTL) market. Old Dominion and XPO trade at about 40 times expected earnings, while FedEx trades at around 18 times. This lower valuation is the main reason for the spinoff. If FedEx Freight’s multiple rises to match its peers, its price could move significantly above the current when-issued price of about $185 per share, potentially reaching $275 at Old Dominion’s valuation.
FedEx Freight projects sales of $8.7 billion and an operating profit of $1.1 billion for fiscal year 2026. For comparison, Old Dominion is expected to earn about $1.5 billion in operating profit on $5.7 billion in sales, reflecting higher efficiency and profitability margins compared to peers. Closing this efficiency gap will be a major challenge for FedEx Freight’s management.
FedEx shareholders will get one share of FedEx Freight for every two FedEx shares they owned on the record date. FedEx will keep about a 20% stake in the new company.
FedEx Freight targets 4%–6% annual sales growth and 10%–12% annual profit growth. Wall Street expects 6% sales growth and 11% profit growth, in line with the company’s goals. The stock’s future value hinges on whether FedEx Freight achieves these targets.
