Shares of FedEx (FDX -0.84%) hit a new 52-week low on March 21 after the company reported fiscal third-quarter earnings and trimmed its full-year guidance again. Shares of rival package delivery company United Parcel Service (UPS -1.18%) also fell on the news, and then sold off by another 5.1% on March 25 in apparent response to Bank of America analyst Ken Hoexter's downward revision of his forecast for the logistics giant.

FedEx (FDX -0.84%) hit a 52-week low on March 21 after reporting earnings and slashing its full-year guidance. However, the stock has since recovered nearly all of the losses from that sell-off -- although FedEx is still down over 14% in the past year at the time of this writing.

With FDX stock moving south, here we assess if it is a buy at current levels.

After the latest round of economic data hit every professional trader's desk, the moves were made into three distinct names in the retail sector. The moves were backed by leading growth in retail sales data pointing to a breakout in non-store retailers, otherwise known as the E-commerce companies of the economy.

FedEx (FDX -6.49%) stock dropped more than 6% on Friday. This came after the company released earnings Thursday afternoon.

The stock trades at an attractive 7.7x cash flow and 14.4 P/E, yet I remain cautious as weak demand in B2B and priority services could push prices lower. On the positive side, I see potential in the DRIVE cost-cutting plan, which saved $600M this quarter and is targeting $2.2B in annual savings in fiscal 2025. Additionally, I anticipate long term benefits if US tariffs improve domestic manufacturing, though I'm skeptical about the scale and timing of such a shift.

FedEx's Q3 report showed mixed results with a top-line beat but a bottom-line miss, leading to another lowered FY25 guidance due to macroeconomic challenges. Management's bullish tone contrasts with continuous guidance cuts, raising concerns about their credibility and the effectiveness of initiatives like DRIVE and Network 2.0. The Freight spinoff remains on track, offering a potential long-term investment opportunity, but the current stock is overvalued and faces significant headwinds.

FedEx shares fell 7% after Q3 FY 2025 earnings missed expectations and guidance was reduced, despite revenue exceeding forecasts. Despite disappointing results, I see this as a fantastic buying opportunity, upgrading FedEx to a 'Strong buy' due to its undervaluation. The DRIVE initiative is expected to save $4 billion in costs by 2025, enhancing long-term profitability.

FDX' third-quarter fiscal 2025 earnings and revenues improve year over year.

Shares of FedEx Corp (NYSE:FDX ) tanked in early trading Friday after the company reported downbeat fiscal third-quarter results.