Our coverage:

Fedex (FDX) earnings: a massive upside for the stock

Royston Roche | 2:36 am ET, 18 Dec 2018

FedEx Corporation (FDX) shares are trading at $182.19, down -1%. The company is announcing its quarterly earnings results on Tuesday after the market close. What's driving FDX stock price? What's FDX stock price forecast?

Fedex Corporation provides transportation, express delivery, and business services. The stock fell 21% in the past year. The company is now available at a forward P/E ratio of 9.28, which presents a significant discount compared to its industry peers.

Investors are showing interest in the company because of the management's excellent execution of the business plans. On the other hand, a few bearish investors worry about the shrinking free cash flow projected for the next couple of years.  Last quarter’s revenue rose 12% to $17.10 billion and earnings per share came at $3.46 compared to $2.51.

Second-quarter fiscal year 2019 results will be released after market close on December 18, 2018.  Analysts expect the company to earn $3.97 per share on revenue of $17.76 billion. The company beat analysts’ estimates three times in the previous four quarters.

What is the sentiment towards the FDX stock?  Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is trending negative. 

FedEx Corporation (FDX) average analyst price target ($289.88) is 52.85% above its current price ($189.65).

For the latest price and information on FedEx Corporation, please visit Finstead and search for "FDX price" or "FDX news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


FedEx (FDX) stock is looking rock solid

Carla Olson | 6:50 am ET, 17 Sep 2018

FedEx Corporation (FDX) shares are trading at $249.45, up 1.41%.  The company is reporting its earnings results on Monday after the market close.  What's driving FDX stock price? What should investors know about FedEx ?

FedEx Corporation stock has yielded a return of 17% in the past year. The company has recently announced that it will boost ground operations in the U.S. to six days a week. This shows an increased demand from the e-commerce sector.

The bulls are confident about FedEx's business model which is very defensible and tough to replicate. The bears feel that the company's revenues will be hit by trade wars since FedEx derives around 30% of its topline from international trades. Revenue rose 10% to $17.3 billion in the last quarter results with earnings of $5.91 compared to $4.19 for the same period last year.

The next quarterly results will be released after market close on September 17, 2018.  For the upcoming report, the analysts expect the company to earn $3.81 per share on revenue of $16.88 billion. The company beat analyst estimates in three out of four previous quarters.

What is the sentiment towards the FDX stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is positive;
  • The long-term sentiment (9-12 months) is trending positive.

Over the last month, FedEx Corporation (FDX) returned +3.18%.

FedEx Corporation (FDX) average analyst price target ($291.08) is 16.69% above its current price ($249.45).

For the latest price and information on FedEx Corporation, please visit Finstead and search for "FDX price" or "FDX news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


FedEx Corporation (FDX) Buy or Sell Stock Guide

Updated at: 12:45 pm ET, 24 Dec 2018

The analysis below may be helpful to you if you have any of the following questions about FDX stock:

  • Is FDX a buy or a sell?
  • Should I sell or hold FDX stock today?
  • Is FDX a good buy / a good investment?
  • What are FDX analyst opinions, recommendations, ratings?

Here are FDX stock buy reasons/signals:

1. FedEx's huge air fleet, 50,000 drop boxes, and global operations knit together a massive presence unlikely to be replicated except by its few current competitors.

2. In addition to ground growth, resumption of higher margins in the LTL freight and international express businesses should boost revenue growth and consolidated operating margins, assuming some boost in international volume over current levels.

3. During its four-decade history, FedEx has weathered multiple economic cycles and oil supply crises. While short-term results may suffer, the firm's powerful network is here to stay.

4. The new tax law, which reduces corporate tax rate significantly, is a huge positive for FedEx. The new tax law was primarily responsible for the company increasing its earnings projection for fiscal 2018. For fiscal 2018, the company anticipates earnings per share (excluding TNT Express integration expenses and certain other items) in the range of $15-$15.40, higher than the previous projection of $12.70-$13.30.

5. We are impressed by the company's decision to reward shareholders through dividend payments and share buybacks. In June 2017, the company raised its quarterly dividend by 25% to 50 cents a share (or $2 annually) from 40 cents (or $1.60 annually). We expect FedEx to hike its quarterly dividend further shortly, in light of the savings induced by the Tax Cuts and Jobs Act.

6. FedEx experienced a highly successful holiday season driven by increased package volumes. We note that the company had left no stone unturned to perform well in the period. The company hired more than 50,000 seasonal workers to meet the surge in demand.

7. FDX stock price ($158.00) is close to the 52-week low ($156.11). Perhaps now is a good time to buy?

8. FDX quarterly revenue growth was 11.50%, higher than the industry and sector average revenue growth (10.08% and 5.41%, respectively).

9. FDX profitability is improving. The YoY profit margin change was 2.01pp.

10. FDX forward dividend yield is 1.39%, higher than the industry (0.59%) and sector (0.56%) forward dividend yields.

11. FDX PEG ratio (P/E adjusted for growth) is 0.85, and it’s low compared to its industry peers’ PEG ratios.

12. FDX average analyst rating is Strong Buy.

13. FDX average analyst price target ($289.88) is above its current price ($158.00).

Here are FDX stock sell reasons/signals:

1. Although critical to growth, a high level of international exposure makes the firm vulnerable to downturns in global trade and political interference.

2. Operating one of the world's largest airlines is a highly capital-intensive endeavor, and air freighter replenishment will demand substantial capital expenditures during the next several years.

3. While fuel surcharges buffer much of the impact of rapid jet fuel and diesel price shocks, FedEx remains highly exposed to the price of crude oil.

4. We expect high costs to continue hurting FedEx's bottom line. Significant investments at the company's Ground unit are also pushing up costs. Capital expenses are expected to be $5.8 billion for fiscal 2018, higher than fiscal 2017 levels.

5. Shares of FedEx were negatively impacted following reports of Amazon.com testing a new business-to-consumer delivery service. Moreover, FedEx's operations have been continuously hurt by cyber attacks in 2017. Re-occurance of such events will hurt the stock.

6. FedEx is a highly leveraged company. This is indicated by the fact that the ratio of its long-term debt-to-equity (expressed as a percentage) currently stands at 84.8. This compares unfavorably to the figure of 81.5 for the S&P 500 Index.

What are your thoughts on FDX?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finstead Bites, please send us an email at hi@finstead.com.


Try Finstead: the fastest way to get market data and insights on stocks, ETFs, mutual funds, and cryptocurrencies