We're buying the dip in a stock that we have been itching to get bigger in

Shortly after the opening bell, we're buying 130 shares of FedEx at roughly $304 each. Following Wednesday's trade, Jim Cramer's Charitable Trust will own 230 shares of FDX, increasing its weight in the portfolio to about 1.75% from 0.75%. FedEx shares were falling 4% in early trading after the company provided noisy guidance Tuesday night. The selloff is finally giving us a chance to build up this tiny position around our initial cost basis. The reported quarter was better than expected, with FedEx beating analyst estimates on both revenue and adjusted earnings per share (EPS). As we previewed on Sunday, management's guidance was filled with a lot of noise, with the company excluding the newly spun-out FedEx Freight and transitioning to a new fiscal year. These changes made it difficult for investors and analysts to compare results, obscuring the momentum FedEx sees across its business, with a focus on premium business-to-business (B2B) verticals, including healthcare, automotive, aerospace, and data centers, as well as high-value business-to-consumer (B2C) paying off. FedEx guided calendar year 2026 adjusted EPS to be in the range of $16.90 to $18.10. While the full-year guide may have been slightly lighter than what a few Street analysts attempted to model, what's more important is that management estimated $11.30 of adjusted EPS (20% year-over-year growth) in its so-called seven-month transition period of June through December. The company's momentum exiting 2026 should set up for a strong 2027, with many analysts forecasting at least $20 of EPS next year. FDX YTD mountain FedEx YTD With the stock trading at roughly $300 on Wednesday, $20 of earnings implies a 2027 price-to-earnings (P/E) multiple of 15. Given the company's stronger execution and financial performance, we do not believe that it represents a sufficient premium to United Parcel Service 's 13.3 times multiple in the same earnings period. One more piece of confusion was the impact fuel surcharges had on margins. The surcharges, which reset weekly, protected profits but had a negative impact on margins, making the reported results look a little softer than their true nature. FedEx CEO Raj Subramaniam reiterated on the call that when stripping out fuel surcharges, margins would have been up year over year. We also hold a small position in FedEx Freight as a result of getting shares in the spin-off. FedEx Freight reports earnings on Thursday evening. (Jim Cramer's Charitable Trust is long FDX, FDXF. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.