FedEx (FDX, $161.08) shares plunge 22%, on prelim. earnings miss
FedEx stock experienced one of its steepest one-day plunges in decades. The package delivery company’s shares were down more than 22% on Friday. This follows FedEx’s preliminary first-quarter results that fell short of analyst’ expectations, while the company also indicated caution about earnings.
The company expects its fiscal-first-quarter earnings would be nearly $3.44 a share. That’s significantly below consensus estimates of $5.14 a share. The company cited weakening demand in global shipment volumes. What’s more, FedEx also withdrew its guidance for its full-year profit, citing a volatile environment.
Revenue of $23.2 billion in the quarter also missed analysts’ forecasts of $23.59 billion (based on Refinitiv poll).
The company lowered its forecast for capital expenditure for the year by $500 million to $6.3 billion.
On Thursday, FedEx CEO Raj Subramaniam indicated, in an interview with CNBC’s Jim Cramer, that he sees a global recession around the corner. “I think so. But you know, these numbers, they don’t portend very well,” Subramaniam said in response to Cramer’s question of whether the economy is “going into a worldwide recession.”
FDX in +1.57% Uptrend, growing for three consecutive days on December 12, 2024
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where FDX advanced for three days, in of 340 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where FDX's RSI Indicator exited the oversold zone, of 31 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. 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 upward trend is expected.
FDX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on December 03, 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 December 03, 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 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
FDX moved below its 50-day moving average on December 17, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for FDX crossed bearishly below the 50-day moving average on December 18, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 12 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
The Aroon Indicator for FDX entered a downward trend on December 24, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 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 76, 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 (20.642). P/E Ratio (16.164) is within average values for comparable stocks, (22.262). 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 (1.303).
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 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.
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General Information
provider of a broad portfolio of transportation, e-commerce and business services under the FedEx brand
Industry AirFreightCouriers