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 in downward trend: price may decline as a result of having broken its higher Bollinger Band on July 22, 2026
FDX broke above its upper Bollinger Band on July 22, 2026. 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 A.I.dvisor looked at 45 similar instances where the stock broke above the upper band. In of the 45 cases the stock fell afterwards. This puts the odds of success at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
FDX moved below its 50-day moving average on July 23, 2026 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 July 08, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 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 July 20, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on July 21, 2026. You may want to consider a long position or call options on FDX as a result. In of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for FDX just turned positive on July 22, 2026. Looking at past instances where FDX's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where FDX advanced for three days, in of 333 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (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 (2.355) is normal, around the industry mean (3.301). P/E Ratio (16.979) is within average values for comparable stocks, (205.042). Projected Growth (PEG Ratio) (1.332) is also within normal values, averaging (2.324). Dividend Yield (0.018) settles around the average of (0.018) among similar stocks. P/S Ratio (0.795) is also within normal values, averaging (0.957).
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 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 86, placing this stock slightly better than average.
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.
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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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