FedEx is challenged by deteriorating international sales, on account of unfavorable exchange rate moves coupled with global trade tensions.
Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer, indicated that foreign economies’ sluggish growth and international trade disruptions are posing headwinds to the package delivery service company’s overseas revenues.
On Tuesday, FedEx reported its third quarter revenue of $17.01 billion, missing analysts’ estimates of $17.67 billion.
The company’s earnings for the quarter came in at $3.03 per share, which fell short of analysts’ expectation of $3.11 per share (based on Refinitiv poll). Earnings were also lower from the year-ago quarter’s $3.72 per share. Furthermore, the company slashed its full-year 2019 earnings guidance to a range of $15.10 and $15.90 per share, compared with analysts’ forecast of $15.97 (based on Refinitiv data).
According to Graf , FedEx has embarked upon a voluntary employee buyout program to tackle the pressure from slowing international business. Additionally, the company is constraining hiring and curbing discretionary spending, as indicated by Graf.
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where FDX declined for three days, in of 302 cases, the price declined further within the following month. The odds of a continued downward trend 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 .
FDX moved below its 50-day moving average on April 30, 2024 date and that indicates a change from an upward trend to a downward trend.
The Aroon Indicator for FDX entered a downward trend on May 02, 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 Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
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 336 cases, the price rose further within the following month. The odds of a continued upward trend are .
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 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 78, placing this stock slightly better than average.
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 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