FedEx Freight pullback draws long-term buying call amid trucking sector reset

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FedEx Freight pullback buying call

Highlights

FedEx Freight stock falls 25% from June 9 high post-spin-off, presenting a long-term turnaround buying opportunity amid sector reset, according to Jim Cramer.
Broader market declines as WTI crude surges 7% above $75 per barrel on renewed Iran tensions, causing airline, consumer, and bank stocks to drop sharply.
Broadcom jumps 3.5% after Apple details a multiyear partnership valued over $30 billion, though much of the deal was previously announced and priced in.

Trucking reset highlights FedEx Freight opportunity

As reported by CNBC Investing Club, Jim Cramer says Wells Fargo's upgrade of Old Dominion Freight Line also supports a constructive view on FedEx Freight after the recent selloff in less-than-truckload shipping stocks.

He says FedEx Freight remains one of his preferred long-term turnaround stories even after the stock falls 25% from its June 9 high, reached eight days after the business is spun off from FedEx. Cramer describes the company as a "self-help story," arguing it had been held back while operating inside FedEx and that investor misunderstanding around the separation is creating a buying opportunity.

Cramer says the stock should be treated as a long-term holding rather than a short-term trade, adding that he is a buyer of FedEx Freight at current levels.

Broader market swings keep investors cautious

Stocks fall on Wednesday after President Donald Trump says the ceasefire with Iran is effectively "over" and suggests the U.S. could launch additional military strikes. West Texas Intermediate crude rises 7% to more than $75 a barrel, pressuring airlines, consumer names and banks, while Boeing drops 3.5%, Home Depot falls 3% and Goldman Sachs loses about 2.5%.

Cramer urges investors to remain disciplined in a market driven by fast-changing headlines, warning against giving up earlier gains. He also points to Broadcom's 3.5% rise after Apple provides more detail on an expanded multiyear partnership expected to exceed $30 billion, but says investors should not view the announcement as entirely new because Broadcom had already outlined the expansion earlier in the week.

He adds that strong moves in names such as Broadcom and Arm call for caution rather than complacency, and says the club exits its Arm position shortly after the morning meeting to protect gains in the current environment.

Our earlier analysis of Canadian Pacific Kansas City (CP) stock highlighted that the shares were holding a bullish technical bias above key moving averages, even as several momentum indicators flashed overbought conditions. We noted that the most likely near-term setup was consolidation within a defined range, with the next directional signal hinging on a clean break above resistance or below support.

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