Is FedEx a “Coiled Spring”? The Inside Story Behind Jim Cramer’s Bullish Call
When legendary market commentator Jim Cramer calls a stock a “coiled spring,” investors tend to sit up and take notice. His recent bullish pronouncement on FedEx Corporation (FDX) is more than just enthusiasm; it reflects a genuine shift in the logistics giant’s operational and financial outlook, positioning it for a potential breakout just ahead of its critical quarterly earnings report.
Cramer’s optimism, voiced recently, hinges on two major factors: powerful market tailwinds from the surging holiday e-commerce season and a dramatic, years-long internal transformation. “I think FedEx is a coiled spring,” he said, suggesting the stock is ready to pop and predicting it could go “all the way back over $300.” This is a significant call, given the stock was trading around $274.29 on December 5, 2025, and its 52-week high sits just below the $300 mark at $295.24.
The Transformation: Why the Spring is Wound Tight
The “coiled spring” metaphor primarily points to the massive internal overhaul driven by CEO Raj Subramaniam, whom Cramer praised as a “dynamite exec.” The centerpiece of this reinvention is the “DRIVE” transformation initiative, a structural project designed to dramatically simplify and streamline the company’s famously complex network.
Historically, FedEx operated its major divisions—Express, Ground, and Services—as separate entities, leading to redundancies and operational friction. The DRIVE program’s goal is to consolidate these units into a single, unified air-ground network, a full implementation that was anticipated by June 2024. This unification, combined with other efficiencies, is expected to generate an impressive $4.0 billion in permanent cost reductions in fiscal 2025. By moving away from massive infrastructure spending and toward disciplined cost management, the company is significantly lowering its “cost to serve” across all segments.
A Perfect Storm of Demand
While the internal changes are driving efficiency, the external environment is fueling demand. Cramer noted that the e-commerce landscape is showing strong performance, creating a fantastic setup for shipping and logistics companies like FedEx. Indeed, forecasts for the 2025 holiday shopping season are robust. Online sales are projected to grow between 5.3% and 9% year over year, a growth rate that outpaces that of overall retail sales. This sustained digital-first purchasing trend means a massive volume of packages is moving through FedEx’s newly optimized network.
The upcoming earnings report on December 18, 2025, will be the first major test for the newly streamlined company during its peak holiday season. All eyes will be on whether the structural savings from the DRIVE initiative, combined with strong e-commerce demand, finally translate into the margin expansion and free cash flow that investors are waiting for. If FedEx can show it’s successfully managing volume without increasing its cost base, the “coiled spring” may finally be ready to fully unwind, sending the stock higher.
