On Wednesday, courier delivery service company FedEx revealed that it will end its ground-delivery contract with Amazon, and that it won’t renew it at the end of the month.
FedEx dubbed the cancellation as a “strategy to focus on the broader e-commerce market”.
In June, FedEx had announced that it was ending its express U.S. shipping contract with the e-commerce giant, a decision which only affected air services. At the time, FedEx said that less than 1.3% of its total revenue came from serving Amazon during the 12-month period ended Dec. 31.
In late June, Amazon unveiled its Delivery Service Partners program through which it aims to attract entrepreneurs who can create their own local delivery networks with up to 40 vans each. The company also developed a delivery drone that is expected to boosts delivery speed for its Prime customers in North America. It also has a $1.5 billion hub opening in northern Kentucky in 2021 where it’s expanding Amazon Air fleet to include 50 planes. It is hoping that its air network would make two-day shipping possible across the U.S.
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
The 50-day moving average for FDX moved above the 200-day moving average on April 05, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where FDX advanced for three days, in of 338 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 272 cases where FDX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for FDX moved out of overbought territory on April 01, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on April 08, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on FDX as a result. In of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for FDX turned negative on April 05, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FDX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
FDX broke above its upper Bollinger Band on March 21, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. FDX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.614) is normal, around the industry mean (19.997). P/E Ratio (16.164) is within average values for comparable stocks, (23.454). Projected Growth (PEG Ratio) (1.011) is also within normal values, averaging (10.503). Dividend Yield (0.018) settles around the average of (0.037) among similar stocks. P/S Ratio (0.807) is also within normal values, averaging (1.265).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
provider of a broad portfolio of transportation, e-commerce and business services under the FedEx brand
Industry AirFreightCouriers