FedEx expects a $170 million financial hit this quarter due to President Trump’s trade war, after a change in tariff rules crushed demand for packages shipped to the U.S. from China. In early May, the U.

"U.S. manufacturing is still dealing with supply chain and recession worries, global trade isn't moving much, and while FedEx is managing costs well, demand just isn't picking up yet," Schulman added. FedEx shares trade at 11.63 times their projected 12-month forward earnings, compared to UPS's 13.40.

FedEx Corp. on Tuesday forecast a fiscal first-quarter per-share profit that came in shy of Wall Street’s expectations, sending shares of the package-delivery giant lower in after-hours trade.