FedEx (FDX-N)
266 watching
NYSE:FDX
155.19
1.68
(1.07%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
Oct 6, 2022, 8:00 pm
0
PAST TOP PICK
(A Top Pick Oct 19/21, Down 31%) June was all rosy. Investors were ambushed in September, and stock priced dropped. In normalized times, he feels they can move back to the low-mid $20s of earnings. Lots of opportunity here coming out of a recession. He'll be watching closely to see that management earns trust back.
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$156.890
Owned
PAST TOP PICK
(A Top Pick Jun 30/22, Down 18.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with FDX has triggered its stop $195. To remain disciplined, we recommend covering the position at this time.
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PAST TOP PICK
(A Top Pick Oct 01/20, Down 39%) Bellweather for dark clouds in the economy.
Company also has problems within company.
Will need to reduce costs and work on internal issues.
Will re-visit company when management team improves.
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COMMENT
FedEx called for a global recession and shares crashed. Markets fell, but closed off the day's lows. In FedEx's case, the blame for their woes is 70% macro and 30% the company's execution problems. It reports Thursday.
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BUY
Allan Tong’s Discover Picks Lately, the street has changed its tune on FedEx and has pushed shares up more than 15% over the past month vs. 8.7% for UPS. This isn't a knock against UPS. Rather, it's a sign that FedEx is snapping out of its slump and finally has momentum on its side. FedEx trades at 16.2x earnings, in-line with the industry, while it's dividend is 1.97% backed by a safe 20.76% payout ratio. There are 16 buys and five holds with a price target of $292.05, or 26.6% upside. Read 3 Options to Profit from Falling Crude Oil for our full analysis.
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STRONG BUY
It has a unique opportunity with the new CEO. He believes in this so strongly that he says you should buy it right now.
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TOP PICK
An activist investor is pushing them to be more diligent, and he likes the new management. He sees great opportunity here. Delivery for packages is growing exponentially. Drone delivery in the future will cut down labour costs. Also, they trade at only 10x earnings. Lots to like here. (Analysts’ price target is $295.65)
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TOP PICK
Stockchase Research Editor: Michael O'Reilly FDX is a global leader in global shipping and is well positioned to see a return to growth as supply chain issues become resolved. Its integration of it recent shipping acquisition is beginning to gain momentum. Recently reported earnings were inline with analyst expectations, but we like that it supports a 22% ROE and analysts see next year's earnings supporting a PEG ratio of under 1 -- meaning growth in earnings will be strong. We like that cash reserves are stable as they aggressively buy back shares and retire debt. The dividend is backed by a payout ratio of under 35% of cash flow. We recommend setting a stop loss at $195, looking to achieve $300 -- upside over 20%. Yield 1.89% (Analysts’ price target is $298.95)
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BUY
It's a rare and surprising bring spot in this market. Shares have surged 21% from its lows just a few weeks ago. After peaking nearly a year ago, FedEx became a total dog. Topped out at $305 in June 2021, then declined below $200 this past spring. It was rangebound around $190-200 caused by supply chain woes, higher labour costs and the great reopening means consumers moving away from e-commerce and package-delivery. Also, FDX faced very tough YOY comparisons at the height of e-commerce. But this month, FedEx delivered a great quarter last Thursday. Shares jumped from $201 to $240. Weak execution pre-Covid plagued FedEx and buying TNT Express of Europe was ill-fated; Trump's trade war didn't help; and reported failures during holiday seasons. Covid pushed FedEx to new all-time highs. Now, there's room to run.
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PARTIAL SELL
They report Thursday. They just announced a big dividend increase, changed management and added board members. He does not expect a good quarter, so maybe take some profits. But he wants to hear their progress in e-commerce: is it still alive and well?
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BUY
He added shares. It's always traded at a 50% discount to UPS and poorly managed. But now there's an activist tone to FedEx, which is good. With new management, there's opportunity to raise margins, reduce capex and take advantage of a big overall market sell-off.
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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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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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FedEx(FDX-N) Rating
Ranking : 5 out of 5
Bullish - Buy Signals / Votes : 17
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 6
Total Signals / Votes : 23
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, 23 stock analysts published opinions about FDX-N. 17 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?
23 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 2022-10-06, FedEx (FDX-N) stock closed at a price of $155.19.
