FedEx (FDX-N)
256 watching
NYSE:FDX
204.69
3.79
(1.89%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
May 23, 2022, 8:00 pm
0
WATCH
Has fallen 30-35% in line with the tech market and a slowing economy. Cheap price to earnings at 10x earnings, so it's something to look at. A question mark is CEO retiring, but naming his son to one of the largest divisions.
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$208.175
No
TOP PICK
Pretty cheap now. Well-positioned for growth. It's the new go-to in the transportation sector. There's so much delivery of products these days. UPS has focussed more on profitability, while FedEx has focused more on growth and increasing revenue. FedEx will focus more on ground transportation margins. Their overnight business has done very well. Trades at 10x forward earnings and positioned well for growth in the wider economy. (Analysts’ price target is $293.78)
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BUY on WEAKNESS
For logistics exposure, look at Maersk, the biggest shipping company in the world. You can also look at FDX, CJT, or CHRW. Stocks have gone hyperbolic, and have now come back a bit. A lot of funds are selling out. Quality company, structural growth story. You make money when you buy, not when you sell. Buying on the pullback will lock in bigger gains. He owns other logistics plays, but would not be opposed to a position in FDX.
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BUY on WEAKNESS
He sold it yesterday, barely covering his commissions. The Baltic Index closely correlates to the freighT carriers like Fedex and UPS and has been in steady decline and is a harbinger of things to come. He will buy Fedex back at or below $200 as a trade.
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BUY on WEAKNESS
Has interesting long term record and tends to peak at 4X book value. Got there again, then had setback so became a trading buy at $210 to $215. Be careful though - if it fails at this mark sell it. Fair market value is 83% higher so lots of upside now.
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BUY
A market bounce underway? Be cautious. Not all the market negatives are known. He predicts China will at some point still go after Taiwan. Russia does not have a big impact on the U.S. economy, but China does. Volkswagen has gotten cheap at 4-5x earnings and is a great buy. Similarly, FedEx at 10x earnings is a great buy. It's been bouncing off last week's earnings and he bought right after that report. Yes, stocks rise as interest rates do, but margins will be hit because of inflation and rising costs. It's a stockpicker's market.
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DON'T BUY
Longer-term 200-day MA trendline has been falling, and the share price is below that. Challenged by rising wages and labour market constraints. Struggling to improve ground express margins. Historical earnings growth of 6%. UPS has done much better with 14% growth, better technicals, better growth rate, better chart.
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DON'T BUY
Company is benefiting from supply chain issues.
Operations have been improving.
Ocean & air fright prices increasing which is good for company.
Does not own stock.
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BUY
Continues to like it. Is economically sensitive, and he foresees continued economic expansion. A low-PE stock trading at a discount to the market. E-commerce deliveries are skyrocketing and work in their favour. They are controlling labour costs, base don their last report. Also, electrifying vehicles and drone deliveries will also control costs. UPS reported last week very positive results, which could bode well for FedEx when it reports later this quarter.
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DON'T BUY
FDX vs. UPS The chart's long-term 200-day MA is starting to flatline and fall slightly, and the share price is still beneath it. Technically, doesn't look great. Challenged with severe labour market constraints and rising wages. Struggling to improve ground and express margins. UPS 5-year earnings growth is 12% a year, whereas FDX is around 6%. UPS has stronger technicals, with with 200-day MA moving higher and the share price above that. He'd choose UPS.
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DON'T BUY
Owns neither this nor UPS, but prefers UPS. Fedex struggles with rising labour costs. Over the past two quarters, Fedex has reduced guidance. She'd like them to meet their targets and to perform consistently. She has more faith in UPS' CEO, but she is not in this sector. The sector is expanding their business-to-consumer operations, but this is costly to build out.
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COMMENT
Believes FedEx is a great business.
Losing business as Amazon self-fulfills packages.
eCommerce growing, so will benefit from this.
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COMMENT
It reports Thursday. It's the hardest stock to predict. He doesn't know, though he admires management.
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DON'T BUY
FDX vs. UPS Long-term 200-day MA is starting to dip, flatten out, and probably roll over. Trend lines and technicals don't look positive. Labour constraints and rising wages. Struggling to improve margins. UPS has done a lot better. FDX has grown 6% a year for 5 years, UPS 12% and he expects that momentum to continue. UPS is the better name until FDX can turn around.
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BUY
His money would still go to FDX over UPS. Valuation is attractive. Latest earnings were disappointing, due to labour shortages and costs, but this is transitory. Lots of opportunity to cut costs. Innovation and AI make its reliance on labour less and less. Great franchise.
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FedEx(FDX-N) Rating
Ranking : 5 out of 5
Bullish - Buy Signals / Votes : 13
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 6
Total Signals / Votes : 19
FedEx(FDX-N) Frequently Asked Questions
What is FedEx stock symbol?
FedEx is a American stock, trading under the symbol FDX-N on the New York Stock Exchange (FDX). It is usually referred to as NYSE:FDX or FDX-N
Is FedEx a buy or a sell?
In the last year, 19 stock analysts published opinions about FDX-N. 13 analysts recommended to BUY the stock. 6 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for FedEx.
Is FedEx a good investment or a top pick?
FedEx was recommended as a Top Pick by on . Read the latest stock experts ratings for FedEx.
Why is FedEx stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is FedEx worth watching?
19 stock analysts on Stockchase covered FedEx In the last year. It is a trending stock that is worth watching.
What is FedEx stock price?
On 2022-05-23, FedEx (FDX-N) stock closed at a price of $204.69.
