NYSE:FDX
165.67
0.78
(0.47%)
FedEx Corporation is an American multinational courier delivery services company headquartered in Memphis, Tennessee.
More at Wikipedia
Analysis and Opinions about FDX-N
Signal
Opinion
Expert
PAST TOP PICK
PAST TOP PICK
December 10, 2019
(A Top Pick Dec 31/18, Down 0.4%) Slower global growth, not Amazon, has pressured this stock. Also, FedEx is in the crosshairs of the US-China trade war which has hurt the earnings. But FedEx has a great global footprint, trading below 10x forward earnings.
(A Top Pick Dec 31/18, Down 0.4%) Slower global growth, not Amazon, has pressured this stock. Also, FedEx is in the crosshairs of the US-China trade war which has hurt the earnings. But FedEx has a great global footprint, trading below 10x forward earnings.
TOP PICK
TOP PICK
December 10, 2019
He's sticking with this, a past pick. He doesn't expect a US-China trade deal, maybe just more peace. FedEx has been hurt by slowing global growth, but this is reflected in the multiple. The Amazon Effect isn't that big; Amazon amounted to only 1% of FedEx's revenues. Online delivery will continue to grow. FDX has a lower cost structure than UPS. The valuation is really attractive here. There's a lot of downside protection in a sloppy economy, but FDX can also participate if the market rises more. (Analysts’ price target is $171.33)
He's sticking with this, a past pick. He doesn't expect a US-China trade deal, maybe just more peace. FedEx has been hurt by slowing global growth, but this is reflected in the multiple. The Amazon Effect isn't that big; Amazon amounted to only 1% of FedEx's revenues. Online delivery will continue to grow. FDX has a lower cost structure than UPS. The valuation is really attractive here. There's a lot of downside protection in a sloppy economy, but FDX can also participate if the market rises more. (Analysts’ price target is $171.33)
DON'T BUY
DON'T BUY
December 3, 2019
They're caught in a competitive space to deliver parcels, an exploding business; Amazon is now competing. FedEx has an enormous fleet of trucks, planes and vans. The sector is slightly economically sensitive. Maybe steer clear of this for now. No, it won't blow up, because consumer spending is strong, but there will be margin pressure.
They're caught in a competitive space to deliver parcels, an exploding business; Amazon is now competing. FedEx has an enormous fleet of trucks, planes and vans. The sector is slightly economically sensitive. Maybe steer clear of this for now. No, it won't blow up, because consumer spending is strong, but there will be margin pressure.
BUY
BUY
November 27, 2019
Has underperfomed because of trade wars and breakup with Amazon. They haven't executed that well. Plus bad luck with TNT being hacked. They will be back with a vengeance, because technology is their friend for growing profits. Lots of strong catalysts for the future. You can buy it cheaply today.
Has underperfomed because of trade wars and breakup with Amazon. They haven't executed that well. Plus bad luck with TNT being hacked. They will be back with a vengeance, because technology is their friend for growing profits. Lots of strong catalysts for the future. You can buy it cheaply today.
TOP PICK
TOP PICK
November 22, 2019
People are worried about trade. Currently trading at 10x earnings. They bought a company to dominate in Europe which should go well.
People are worried about trade. Currently trading at 10x earnings. They bought a company to dominate in Europe which should go well.
HOLD
HOLD
November 7, 2019
Acquisition in Europe is the reason for downturn. Overall, online shopping and delivery should grow. Hiccups of the acquisition will be resolved. Monitor it going forward for positive news about the acquisition.
Acquisition in Europe is the reason for downturn. Overall, online shopping and delivery should grow. Hiccups of the acquisition will be resolved. Monitor it going forward for positive news about the acquisition.
BUY WEAKNESS
BUY WEAKNESS
November 5, 2019
Buy now ahead of the holiday shopping season? It's cheap, trading at 10x earnings. They have 3 issues: they're losing revenues from losing Amazon; the TNT Express acquisition has been really difficult to absorb; and they are going to 7 days of ground delivery which raises their costs. That said, you can wait and buy FedEx when it's cheaper.
Buy now ahead of the holiday shopping season? It's cheap, trading at 10x earnings. They have 3 issues: they're losing revenues from losing Amazon; the TNT Express acquisition has been really difficult to absorb; and they are going to 7 days of ground delivery which raises their costs. That said, you can wait and buy FedEx when it's cheaper.
WATCH
WATCH
October 18, 2019
The relative performance to the S&P has been in decline for the past two years. The floor at $138 would be key support -- after that $120 is the next level of support. He would sell half if it fails at $138.
The relative performance to the S&P has been in decline for the past two years. The floor at $138 would be key support -- after that $120 is the next level of support. He would sell half if it fails at $138.
PAST TOP PICK
PAST TOP PICK
October 18, 2019
(A Top Pick Dec 28/18, Down 5%) A surprise is that Fedex became a poster child for the impact of the trade war. Amazon represented 2% of the business and even with them entering the space, it will take some time to build out the infrastructure. The valuation is very cheap right now and there is still some growth. They've recently added to the position.
(A Top Pick Dec 28/18, Down 5%) A surprise is that Fedex became a poster child for the impact of the trade war. Amazon represented 2% of the business and even with them entering the space, it will take some time to build out the infrastructure. The valuation is very cheap right now and there is still some growth. They've recently added to the position.
DON'T BUY
DON'T BUY
October 16, 2019
Buy during negative sentiment? Moodys just upgraded FedEx. Global trade is under pressure, so that's a headwind. Also, Amazon could very well build their own delivery network for certain parts of their operation. They manage to build AWS, in comparison. So, Amazon is a greater worry to FedEx. So, he's cautious about FedEx.
Buy during negative sentiment? Moodys just upgraded FedEx. Global trade is under pressure, so that's a headwind. Also, Amazon could very well build their own delivery network for certain parts of their operation. They manage to build AWS, in comparison. So, Amazon is a greater worry to FedEx. So, he's cautious about FedEx.
DON'T BUY
DON'T BUY
October 4, 2019
He is on the fence on this one. Fred Smith is not getting any younger. They have high fixed cost requirement as it holds as many airplanes as the major airlines. It has depots and trucks all over the world. The stock went down when Amazon announced they would begin their own shipping. He thinks they are a good company with a large moat around it. He would not jump in right now --it may be too late in the business cycle.
He is on the fence on this one. Fred Smith is not getting any younger. They have high fixed cost requirement as it holds as many airplanes as the major airlines. It has depots and trucks all over the world. The stock went down when Amazon announced they would begin their own shipping. He thinks they are a good company with a large moat around it. He would not jump in right now --it may be too late in the business cycle.
DON'T BUY
DON'T BUY
October 3, 2019
UPS-N had some interesting news with the FFA approval of their drone delivery business. FDX-N is a few PE multiple points cheaper. UPS has had a positive trend change. FDX has been pulling back again. He prefers UPS if you had to. But neither one is really doing well. Global growth is the most important indicator for both companies and it is not favourable.
UPS-N had some interesting news with the FFA approval of their drone delivery business. FDX-N is a few PE multiple points cheaper. UPS has had a positive trend change. FDX has been pulling back again. He prefers UPS if you had to. But neither one is really doing well. Global growth is the most important indicator for both companies and it is not favourable.
DON'T BUY
DON'T BUY
October 3, 2019
Fedex vs. UPS Fedex got clobbered based on past earnings, so they've diverged from UPS. Positive seasonality all the way to Thanksgiving. UPS has a trend of higher highs, higher lows, but Fedex is the reverse. He'd stay away from all transportation altogether because shipping metrics on the economy are pathetic. Better places to be.
Fedex vs. UPS Fedex got clobbered based on past earnings, so they've diverged from UPS. Positive seasonality all the way to Thanksgiving. UPS has a trend of higher highs, higher lows, but Fedex is the reverse. He'd stay away from all transportation altogether because shipping metrics on the economy are pathetic. Better places to be.
DON'T BUY
DON'T BUY
September 26, 2019
They missed their numbers but issued downbeat guidance. They also divorced from Amazon, who are now competing against them. Third, the trade war is impacting their earnings. FedEx is basically saying that the global economy is slowing. They need to make up for the Amazon loss, perhaps dealing with Shopify or something. The DHL acquisition didn't integrate well.
They missed their numbers but issued downbeat guidance. They also divorced from Amazon, who are now competing against them. Third, the trade war is impacting their earnings. FedEx is basically saying that the global economy is slowing. They need to make up for the Amazon loss, perhaps dealing with Shopify or something. The DHL acquisition didn't integrate well.
PAST TOP PICK
PAST TOP PICK
September 25, 2019
(A Top Pick Aug 09/19, Down 10%) They had an earnings call where they missed guidance and dropped their expectations. Asia-Pac economic slowing was to blame. However, there is only a handful of global shipping companies and this is on sale right now -- a rare opportunity.
(A Top Pick Aug 09/19, Down 10%) They had an earnings call where they missed guidance and dropped their expectations. Asia-Pac economic slowing was to blame. However, there is only a handful of global shipping companies and this is on sale right now -- a rare opportunity.
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