FedEx Corporation FDX announced that its Express segment’s president and CEO, Donald F. Colleran, is set to retire on Dec 31, 2022. Colleran will be succeeded by Richard W. Smith, regional president of the Americas and executive vice president of global support.

Colleran was working at Flying Tigers when FDX acquired the company in 1989. Since joining, he has worked in several key leadership roles at FedEx. He was responsible for international sales and operations management, having served as the president of FedEx Express Canada. Prior to becoming the president and CEO of FedEx Express in 2019, Colleran served as the executive vice president and chief sales officer of FedEx in 2017.

The Express segment is FedEx’s primary revenue generator. It accounted for 50.1% of FDX’s total revenues in fiscal 2021 (ended May 31, 2021). Under Colleran’s leadership, the Express segment has been performing impressively, owing to higher revenue per package and increased international and U.S. domestic package yield.

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Raj Subramaniam, president and COO of FedEx, said, "From launching new capabilities for our customers to leading our global FedEx Express team during some of the most challenging times, including the COVID-19 pandemic, Don has been instrumental in creating and executing our remarkable global growth strategy."

Having joined FedEx in 2005, Smith has served as the president and CEO of FedEx Logistics. He will be named the president and CEO-elect of FedEx Express on Apr 1, 2022. However, he will assume his full responsibilities from Sep 1, 2022. To ensure a smooth transition, Colleran will remain at FedEx as the CEO executive advisor through December end.

Zacks Rank & Key Picks

FedEx carries a Zacks Rank #3 (Hold).

Some better-ranked stocks within the broader Transportation sector are as follows:

USA Truck USAK carries a Zacks Rank #1 (Strong Buy). The company’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters (in line in one), the average beat being 64.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of USA Truck have rallied more than 50% in the past six months.

GATX Corporation GATX carries a Zacks Rank #2 (Buy). The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 27.7%.

Shares of GATX have rallied more than 36% in the past six months.

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