Shares of FedEx Corp. experienced a significant fall following an earnings miss, prompting one Wall Street analyst to view this as an attractive buying opportunity for investors. The stock has since recovered some of its losses, but the initial drop has caught the attention of analysts and investors alike.

According to FactSet data, FedEx's stock was down as much as 12.1% at its post-open intraday low of $246.05, and as much as 14.5% at its premarket low of $239.36. Commenting on the situation, Citi Research analyst Christian Wetherbee expressed disappointment in the second-quarter results, particularly citing "meaningfully worse" than expected Express results. However, Wetherbee believes that the stock's decline has been overdone.

In a note to clients, Wetherbee reiterated his buy rating and $300 stock price target, indicating a potential 20% upside from its current levels. Despite the disappointing results, Wetherbee maintains that the trajectory of FedEx's earnings power through fiscal 2025 remains largely unchanged.

Wetherbee argues that the outlook for FedEx is not as bleak as the Express segment's results would suggest. He attributes the disappointment to cyclical low margins and believes that when the cycle turns, leverage will return, potentially boosting the company's performance.

However, not all analysts share Wetherbee's optimism. J.P. Morgan's Brian Ossenbeck reduced his price target to $305 from $322 but maintained a neutral rating. Ossenbeck points to softer demand trends in the U.S. for FedEx's Express business, stating that it knocks the wind out of the bull case until the potential for improvements in Express can be re-established.

Similarly, Raymond James' Patrick Brown lowered his price target to $275, reiterating an outperform rating. Brown acknowledges FedEx's efforts to turn Express profitability but emphasizes that a true turnaround in the business has been years in the making. As a result, he remains cautious and adopts a "wait-and-see" approach concerning Express.

Of the 33 analysts surveyed by FactSet who cover FedEx, 20 hold a bullish view, while 13 remain neutral. The average stock price target stands at $295.79.

For the year-to-date, FedEx's stock has surged by an impressive 44.4%, despite a 3.4% decline in the month of analysis. In comparison, the Dow Jones Transportation Average has rallied by 19.7% in the same period, while the Dow Jones Industrial Average (not mentioned in detail) has not been specified but should be mentioned for comparative purposes.

Overall, the recent selloff in FedEx's stock has presented an opportunity for investors, leading analysts to express varying opinions on the company's future performance. The divergence in views highlights the uncertainty surrounding FedEx's Express segment and its potential for improvement. Investors will be closely watching the company's strategic initiatives and performance in the coming months as they make their investment decisions.