American multinational delivery services provider FedEx Corp. (FDX) is making a strategic investment in Nimble to bolster its automated supply chain offerings. Nimble operates an artificial intelligence (AI) and robotic e-commerce fulfillment technology platform. The alliance will help FedEx to scale the operations of its FedEx Fulfillment centers with an autonomous 3PL (third-party logistics) model.
FedEx Makes Strategic Investment in Nimble
A 3PL service provider offers outsourced logistics services that encompass all areas, including packaging, warehousing, fulfillment, and distribution. Nimble offers these services powered by AI and automation, making them cost effective and more efficient compared to human intervention.
FedEx is particularly looking to utilize Nimble’s services for fulfilling small and medium-sized businesses’ orders and inventory management. The investment will help FedEx expand its footprint and streamline its supply chain capabilities across North America. The amount of FedEx’s investment remains unknown at the time. FedEx operates a vast network of over 130 warehouses and fulfillment centers in North America and also processes 475 million returns per year.
Website Traffic Hints at FedEx’s Thriving Business
The Nimble investment is expected to further enhance FedEx’s position in the logistics space. FedEx is one of the largest package delivery providers in the world. According to TipRanks’ Website Traffic tool, the total estimated visits to all of FedEx’s apps and websites worldwide increased by 18.55% in the year-to-date period compared to last year.
Is FedEx a Good Stock to Buy?
Despite FedEx’s perceived strength, analysts remain divided on FedEx stock’s trajectory as global shipments have remained sluggish this year. On TipRanks, FDX stock has a Moderate Buy consensus rating based on 12 Buys and five Hold recommendations. Also, the average FedEx Corp. price target of $322.38 implies nearly 13% upside potential from current levels. Meanwhile, FDX shares have gained nearly 14% so far this year.
