economy

We're buying more shares of a recent spin-off that has great long-term prospects

The stock has hit a rough patch since reporting a noisy quarter back in June, as is typical of companies that were spun out.

We're buying more shares of a recent spin-off that has great long-term prospects

TL;DR

  • Jim Cramer's Charitable Trust is buying 80 additional shares of FedEx Freight (FDXF).
  • The trust's stake in FDXF will increase to 2% of the portfolio.
  • FedEx Freight specializes in the less-than-truckload (LTL) market.
  • The stock has declined since its June spin-off report but exceeded analyst expectations for revenue and adjusted operating income.
  • Management initiatives are expected to improve volumes, yield, and efficiency, driving margin expansion.
  • The freight cycle is showing signs of improvement after a multiyear recession.

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