FedEx Freight (FDXF) Stock Begins Trading Monday — Here’s What Investors Need to Know

TLDR

• FedEx Freight will begin trading independently on June 1 under the ticker FDXF
• FedEx shareholders receive one share of FDXF for every two FDX shares held; FedEx retains a ~20% stake
• FDXF is currently trading on a when-issued basis at around $185, but could be worth $275 if valued like peer Old Dominion
• FedEx Freight targets 4%–6% sales growth and 10%–12% operating profit growth in the medium term
• FDX stock holds a consensus Strong Buy from 21 analysts, with an average price target of $423.15

The long-awaited spinoff of FedEx Freight is nearly done. The less-than-truckload (LTL) unit will begin trading independently on Monday, June 1, under the ticker symbol FDXF on the New York Stock Exchange.

FedEx Freight is the LTL arm of FedEx, serving industrial customers that need to move goods over shorter distances without filling an entire truck. It sits in the same space as Old Dominion Freight Line and XPO.

The separation has been in the works for a while. FedEx has been trimming its business down to focus on its core shipping and logistics operations, and Freight — while profitable — was always a smaller piece of the overall picture.

FedEx Freight expects fiscal year 2026 sales of $8.7 billion and an operating profit of $1.1 billion. For context, the broader FedEx business is projected to do nearly $94 billion in sales this year.

On a when-issued basis, FDXF has been changing hands at around $185 per share. That’s the market’s early read before the stock officially exists.

The Valuation Gap

Here’s where it gets interesting. Old Dominion, the gold standard in LTL, trades at close to 40 times forward earnings. FedEx as a whole trades at roughly 18 times. That gap is the entire reason this spinoff makes financial sense.

If FDXF were to trade in line with Old Dominion’s multiple, analysts estimate the stock could be worth around $275 — nearly 50% above its when-issued price.

Old Dominion is the more profitable operator, though. It’s expected to generate roughly $1.5 billion in operating profit from $5.7 billion in sales in 2026, giving it a fatter margin than FDXF.

Closing that margin gap will be key for FDXF to earn a comparable valuation. The company says it’s targeting 10%–12% operating profit growth in the medium term, which would help.

For comparison, Old Dominion has averaged around 8% operating profit growth annually over the past five years. Wall Street expects that to run at about 11% going forward — right in line with where FDXF is aiming.

What FDX Shareholders Get

FedEx shareholders are receiving one share of FDXF for every two FDX shares they hold as of the record date. FedEx itself is keeping a roughly 20% stake in the freight business post-spinoff.

FDX stock has had a strong run heading into this event — up more than 40% year-to-date and over 80% over the past 12 months coming into Friday’s session.

On the analyst side, FDX holds a consensus Strong Buy rating from 21 Wall Street analysts, based on 17 Buy, 3 Hold, and 1 Sell recommendation. The average price target sits at $423.15, implying roughly 3% upside from current levels.

FDXF officially begins trading Monday, June 1.

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