Jim Cramer Describes FedEx as a "Coiled Spring" Ready to Unleash Potential
Jim Cramer's Commentary: Jim Cramer expressed optimism about FedEx Corporation, suggesting it is poised for a strong performance due to the lack of disappointing e-commerce news, except for Target, and praised the leadership of CEO Raj Subramaniam.
Investment Recommendation: Cramer encouraged buying FedEx stock, stating it is one of his favorites and predicting it could rise above $300, highlighting the company's strong quarter and effective management.
Comparison with AI Stocks: While acknowledging FedEx's potential, the article suggests that certain AI stocks may offer better upside potential and lower downside risk, indicating a shift in investment focus.
Additional Resources: The article mentions a free report on undervalued AI stocks that could benefit from current economic trends, inviting readers to explore further investment opportunities.
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- Market Closure: The New York Stock Exchange and Nasdaq are closed today in observance of Presidents' Day, with U.S. bond markets also fully shut down, indicating the holiday's direct impact on financial operations, with trading resuming on February 17.
- Banking Services: Most commercial banks, including JPMorgan Chase, Bank of America, and Capital One, are closed today following the Federal Reserve's holiday schedule, although online banking and ATM services remain operational, with transactions likely delayed until the next business day.
- Postal Service Suspension: The U.S. Postal Service has suspended regular mail delivery and closed all retail post office locations today, while private carriers continue to operate, highlighting the operational differences in public services during holidays.
- Retail Promotions: Many department stores are leveraging Presidents' Day for significant sales, particularly in furniture and appliances, aiming to attract consumers and boost sales, reflecting retailers' strategic approaches during holiday periods.
- Layoff Announcement: Lowe's plans to cut approximately 600 corporate and support roles, representing less than 1% of its total workforce, to better support store employees and enhance customer service experience.
- Industry Context: This layoff aligns with trends among other major retailers like Target and Home Depot, which have also announced job cuts of 500 and 800 positions respectively, indicating a collective effort in the retail sector to optimize resource allocation and improve customer satisfaction.
- Earnings Expectations: Lowe's is expected to report $20.34 billion in Q4 2024 revenues, reflecting a 10% increase from $18.55 billion in the same period last year, with earnings per share projected at $1.94, slightly above last year's $1.93.
- Market Sentiment: On Stocktwits, retail sentiment around Lowe's shares shifted from 'bullish' to 'neutral', indicating cautious investor sentiment regarding the company's future performance, despite a 13% increase in stock price over the past year.
- Potential Refunds: The U.S. Supreme Court is set to rule on February 20 regarding Trump's tariff regime, with a ruling in favor potentially triggering refunds exceeding $130 billion, significantly reshaping American trade policy.
- Increased Household Tax Burden: U.S. households are projected to face an average tax increase of $1,000 in 2025, rising to $1,300 in 2026, highlighting the direct economic impact of tariffs on ordinary citizens.
- Tariff Revenue Figures: According to CBP data, the U.S. collected over $200 billion in tariffs between January 20 and December 15, 2025, with total customs revenue for 2025 estimated at $264 billion, yielding a net gain of approximately $132 billion after accounting for economic drag.
- Market Reaction: Following Trump's April 2025
- CPI Expectations: The consumer price index, set to be released at 8:30 a.m. ET on Friday, is expected to show a month-over-month increase of 0.3% and a year-over-year rise of 2.5%, which could significantly influence market sentiment and lead investors to reassess their risk appetite.
- Moderna Stock Fluctuations: Moderna's shares have surged 50% over the past three months, closing at $40.11 on Thursday, although this remains significantly lower than the pandemic peak of $497, indicating ongoing volatility in biotech stocks that investors are closely monitoring.
- Wendy's Stock Decline: Wendy's shares fell 7.7% on Thursday, down 55% from their 52-week high, highlighting the persistent pressures facing the fast-food industry, which may impact its future market performance.
- Retail Sector Dynamics: The Amplify Online Retail ETF dropped nearly 4% on Thursday, now down 19.5% from its September high, reflecting weakness in the retail market, especially after experiencing five consecutive weeks of declines, which could negatively affect overall consumer confidence.
- Tariff Cost Surge: Detroit Axle's import tariff skyrocketed from $25,000 to $725,000, resulting in a $700,000 increase in shipping costs, making it the company's largest expense and forcing price hikes to cover profit losses.
- Legal Challenge: CEO Mike Musheinesh filed a lawsuit questioning the Trump administration's authority to impose taxes via executive order, emphasizing the importance of upholding free market principles and constitutional rights, reflecting strong discontent with government actions.
- Tariff Revenue Data: U.S. Treasury data shows tariff collections reached approximately $29 billion in January 2026, tripling from the previous year, yet showing a decline from the October 2025 peak, indicating ongoing trade policy uncertainty.
- Supreme Court Dynamics: The Supreme Court is poised to rule on cases related to Trump, with legal experts predicting an opinion release shortly after the court reconvenes on February 23, which could significantly impact the operational environment for companies like Detroit Axle.
- Market Performance Comparison: Walmart's market cap has reached $1 trillion, with a 170% increase over the past five years, significantly outperforming the S&P 500's 75% return; however, its high valuation with a P/E ratio soaring from 16.5 in 2008 to 45 today indicates a lack of margin of safety in a downturn.
- Dividend Yield Analysis: Walmart's dividend yield stands at a mere 0.7%, well below its 10-year average of 1.8%, while competitor Target offers a 3.9% yield, potentially attracting consumers to lower-priced retail during economic downturns.
- Challenges for McDonald's: McDonald's P/E ratio has risen from 15 in 2008 to 30 today; despite its relatively stable performance in the fast-food sector, changing consumer spending patterns due to










