On Tuesday after the closing bell, delivery services company FedEx reported fiscal 2021 Q1 earnings results that beat analysts’ estimates.
Revenues of $19.3 billion surpassed the $17.55 billion expected by analysts. Adjusted earnings per share of $4.87 also exceeded expectations of $2.69 per share.
According to FedEx, results got boosted in part due to volume growth in the company’s international priority and U.S. domestic residential package services. Better yields for its ground and freight services were additional tailwinds.
However, the company also experienced higher costs related to "strong demand," employee compensation, and COVID-19 precautions – factors that offset some of the gains.
FedEx projected its capital spending for the year to be $200 million higher to $5.1 billion, "driven by additional capacity initiatives to support increased volume levels."
Tickeron's analysis suggests that FDX is in +1.67% Uptrend, rising for three consecutive days on September 15, 2020
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where FDX advanced for three days, in 221 of 359 cases, the price rose further within the following month. The odds of a continued upward trend are 62%.
Current price $252.51 is above $225.84 the highest resistance line found by A.I. Throughout the month of 08/13/20 - 09/15/20, the price experienced a +16% Uptrend. During the week of 09/08/20 - 09/15/20, the stock enjoyed a +7% Uptrend growth.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Aroon Indicator entered an Uptrend today. In 133 of 301 cases where FDX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 44%.
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Moving Average Convergence Divergence Histogram (MACD) for FDX turned negative on September 03, 2020. 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 41 similar instances when the indicator turned negative. In 24 of the 41 cases the stock turned lower in the days that followed. This puts the odds of success at 59%.
FDX broke above its upper Bollinger Band on September 11, 2020. 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.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 62%. During the last month, the daily ratio of advancing to declining volumes was 3.9 to 1.
The Tickeron Price Growth Rating for this company is 2 (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 Profit vs. Risk Rating rating for this company is 52 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 58, placing this stock slightly better than average.
The Tickeron Valuation Rating of 68 (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (3.39) is normal, around the industry mean (6.41). P/E Ratio (48.30) is within average values for comparable stocks, (62.40). Projected Growth (PEG Ratio) (0.18) is also within normal values, averaging (1.09). FDX has a moderately high Dividend Yield (1.99) as compared to the industry average of (0.78). P/S Ratio (0.49) is also within normal values, averaging (3.55).
The Tickeron SMR rating for this company is 72 (best 1 - 100 worst), indicating weak sales and an unprofitable 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 94 (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.