FedEx (FDX, $172.91) will cut $1 billion more in costs, after profit fall
FedEx posted its fiscal second quarter adjusted earnings of $3.18 per share, topping the Street expectations of $2.82. But the decrease in quarterly net income to $788 million (down from $1.04 billion a year earlier) has apparently propelled the transportation services company to cut $1 billion more in costs – vs. its forecast in September, in order to achieve the total fiscal 2023 savings to $3.7 billion compared with its prior plan for the year.
Revenue for the three months ending November was $22.8 billion vs. $23.74 billion expected.
The company’s Express unit ‘s operating income was down -64% year-over-year, while FedEx Ground operating income climbed +24%. FedEx freight operating income rose +32% year over year.
For the full-year, FedEx has projected earnings per share of between $13 and $14, vs. analysts' expectations of $14.08 per share.
FDX in downward trend: 10-day moving average broke below 50-day moving average on May 25, 2023
The 10-day moving average for FDX crossed bearishly below the 50-day moving average on May 25, 2023. 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 .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 31, 2023. 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 .
FDX moved below its 50-day moving average on May 24, 2023 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 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 May 16, 2023. 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 Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near 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 347 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.
Fundamental Analysis (Ratings)
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 (2.208) is normal, around the industry mean (39.595). P/E Ratio (18.692) is within average values for comparable stocks, (28.988). Projected Growth (PEG Ratio) (1.305) is also within normal values, averaging (11.655). Dividend Yield (0.021) settles around the average of (0.045) among similar stocks. P/S Ratio (0.605) is also within normal values, averaging (1.197).
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 slightly weaker than average sales and a marginally 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 that the returns do not compensate for the risks. FDX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock worse than average.
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
General Information
provider of a broad portfolio of transportation, e-commerce and business services under the FedEx brand
Industry AirFreightCouriers
FDX and
Correlation & Price change
A.I.dvisor indicates that over the last year, FDX has been loosely correlated with XPO. These tickers have moved in lockstep 63% of the time. This A.I.-generated data suggests there is some statistical probability that if FDX jumps, then XPO could also see price increases.
| Ticker / NAME | Correlation To FDX | 1D Price Change % | ||
|---|---|---|---|---|
| FDX | 100% | -0.32% | ||
| XPO - FDX | 63% Loosely correlated | +1.24% | ||
| UPS - FDX | 59% Loosely correlated | +0.50% | ||
| EXPD - FDX | 57% Loosely correlated | +1.06% | ||
| GXO - FDX | 50% Loosely correlated | +2.75% | ||
| CHRW - FDX | 50% Loosely correlated | +1.00% | ||
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