FedEx (FDX) Picks Raj Subramaniam As New Express Unit CEO

FedEx Corporation (NYSE:FDX) has announced Raj Subramaniam as the new president and chief executive officer (CEO) of FedEx Express, effective Jan 1, 2019. He will replace David L. Cunningham, who is set to retire on Dec 31, 2018.

Subramaniam has served FedEx for more than 27 years and was promoted to his current position of executive vice president, chief marketing and communications officer of the company in 2017. Previously, he served as president of FedEx Express, senior vice president of international marketing and executive vice president of marketing at FedEx Services. Brie Carere, a FedEx veteran of more than 17 years, will take over as the new executive vice president, chief marketing and communications officer of FedEx.

Meanwhile, Cunningham as president and CEO of FedEx Express, was responsible for guiding the affairs of FedEx’s largest contributor to revenues. The segment, which contributed 54.1% to the company’s top line in first-quarter 2018, includes operations of TNT Express as well. TNT was acquired in 2016.

Cunningham, who joined FedEx in 1982, has held several top positions including the ranks of chief operating officer and president - international, FedEx Express Asia Pacific chief financial officer and regional president of the Asia Pacific region.

Given this backdrop, investors will keenly await updates regarding the progress of FedEx Express under Raj Subramaniam.

Zacks Rank & Key Picks

FedEx carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are CSX Corporation (NASDAQ:CSX) , Air France-KLM (OTC:AFLYY) and Spirit Airlines (NYSE:SAVE) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Shares of Air France-KLM and Spirit have surged more than 26% and 100%, respectively, in the past six months. Meanwhile, the CSX stock flaunts an impressive earnings history, having outpaced the Zacks Consensus Estimate in each of the trailing four reported quarters, the average being 15.4%.

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