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.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
FDX sees MACD Histogram crosses below signal line
FDX saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on August 31, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 50 instances where the indicator turned negative. In 29 of the 50 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 58%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for FDX moved out of overbought territory on August 14, 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 40 similar instances where the indicator moved out of overbought territory. In 22 of the 40 cases, the stock moved lower in the following days. This puts the odds of a move lower at 55%.
The Momentum Indicator moved below the 0 level on August 27, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on FDX as a result. In 47 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 57%.
FDX moved below its 50-day moving average on September 08, 2026 date and that indicates a change from an upward trend to a downward trend.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 56%.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 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.
The 10-day moving average for FDX crossed bullishly above the 50-day moving average on August 14, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 71%.
Following a +0.91% 3-day Advance, the price is estimated to grow further. Considering data from situations where FDX advanced for three days, in 234 of 332 cases, the price rose further within the following month. The odds of a continued upward trend are 70%.
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 196 of 280 cases where FDX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 70%.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 22 (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (2.333) is normal, around the industry mean (3.560). P/E Ratio (16.819) is within average values for comparable stocks, (199.881). Projected Growth (PEG Ratio) (1.319) is also within normal values, averaging (1.392). Dividend Yield (0.018) settles around the average of (0.020) among similar stocks. P/S Ratio (0.787) is also within normal values, averaging (2.123).
The Tickeron PE Growth Rating for this company is 22 (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 41 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 45 (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 SMR rating for this company is 57 (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.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
provider of a broad portfolio of transportation, e-commerce and business services under the FedEx brand
Industry OtherTransportation
Advertisement