Ken Hoextra, research analyst at Bank of America, told CNBC that he sees more growth ahead for FedEx and transport stocks. Mr. Hoextra told CNBC, “When you look at the growth of the economy and e-commerce, you’re really seeing a huge increase in demand and not only that but for the first time in a long time we’re seeing the air freight carriers really focus on pricing and so that’s really going to lead to some bottom line growth.
We think there’s growth not only left in Fedex but in the transports as well given the level of inventories in the country. We’re seeing really low inventories in our surveys that show all-time low levels and that’s really generating some of the core demand for transports you’re seeing right now.”
Ken Hoextra, research analyst at Bank of America, talks about the recent out performance of transports relative to broader markets, largely lead by gains in FedEx.