FedEx (FDX, $162.51) Is Fearful Of Economic Headwinds, Cuts Profit Outlook for 2019
FedEx is portending global trade tensions and a slowing of economic growth to dampen its business in 2019.
Lowering its profit projection for the full fiscal year (ending May 30) by 7-10%, the courier delivery services company said that its international business especially in Europe faltered over the last three months. FedEx’s U.S. business, however, is relatively strong.
FedEx has indicated plans to offer buyouts to it U.S. employees and to slow down new hiring. Job cuts are expected to reduce the company’s costs by $225 million to $275 million per year. The company hopes that the buyouts would boost productivity, as indicated by CEO Fred Smith in a call with investors (as reported by CNN).
However, the company’s recent performance has been quite strong. It expects to have record shipments during the ongoing holiday period. It registered positive growth in revenue and profit for its fiscal second quarter, ending November 30. But its profit margin was slightly lower than a year ago.
Also, despite the job cuts, FedEx hopes to have an overall expansion in employment “over the next several years, again, assuming moderate economic growth," as mentioned by Smith.
FDX sees MACD Histogram crosses below signal line
FDX saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on February 25, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 55 instances where the indicator turned negative. In of the 55 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for FDX moved out of overbought territory on March 03, 2026. 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 41 similar instances where the indicator moved out of overbought territory. In of the 41 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 March 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on FDX as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent 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 .
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where FDX advanced for three days, in of 323 cases, the price rose further within the following month. The odds of a continued upward trend are .
FDX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 250 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 Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 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 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 (3.000) is normal, around the industry mean (3.088). P/E Ratio (19.873) is within average values for comparable stocks, (177.112). Projected Growth (PEG Ratio) (1.315) is also within normal values, averaging (1.827). Dividend Yield (0.016) settles around the average of (0.027) among similar stocks. P/S Ratio (0.951) is also within normal values, averaging (0.948).
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 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 89, placing this stock slightly better than average.
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General Information
provider of a broad portfolio of transportation, e-commerce and business services under the FedEx brand
Industry OtherTransportation
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