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Fedex

FedEx MEDIUM-TERM OUTLOOK|Technicals &Few Fundamentals|DJUSAF/TSFedEx(FDX) : Series on Equities (Extension to XLI post)- Sept 22nd (5 Minute Read) Since I do not post much about individual equities (maybe this will change in the future) , I will keep this post short and mostly technical . Nevertheless, some extremely significant fundamentals will be analysed . The purpose of this post is to analyse FedEx's performance and their correlation with the expected performance of the US economy in the next 3-4 Quarters . Key word : Expectations . Starting-off with the technicals. On the monthly chart, FDX is nearing a bearish cross/squeeze on the ichimoku cloud . This is quite crucial as the ichimoku cloud previously served as a buy zone in 2016 and 2012 . At the end of 2018 and the sell-off, the primary support levels for FedEx were the 100 Monthly EMA (turquoise line) near the ichimoku cloud. Unfortunately, this outcome only served as a bearish flag, and with the recent earnings miss the cross finally happened. At this moment and time in September, the last monthly candle simply looks very nasty(bearish) . As labelled from the chart, the next support zones are the previous bottoms from 2016 and the peaks of 2007 ~122-132$ . Now, let's dive into the fundamentals and compare FedEx to the dow benchmark for delivery and transportation services . ibb.co ( DJUSAF- Delivery Services ) ibb.co ( DJUSTF- Transportation Services ) Unfortunately, these charts can't be accessed on Tradiview due to regulations. FedEx blamed the recent earnings miss on the US/China Trade war stall and the split with Amazon . This is fair, but is there more to it? From the 2 links above, it's clear that the two industries haven't performed as well as compared to some of the other cyclical industries. DJUSAF/DJUSTF can be considered somewhat middle of the pack between cyclical and defensive , depending on the factors considered. Perhaps FedEx is struggling, but so are these fundamental industries as a whole . The last earnings miss from FedEx was not as large as the previous one, yet it seems that the expectations were that it will perform just as well as the rest of the SPX/Dow companies . The main issue at hand is, whether this poor performance can improve our expectations on, how the economy will perform in the next four critical and highly risky quarters (Q3;Q4- 2019, Q1;Q2- 2020)? (ibb.co) Credit to the Cass Freight inc . The recent report from the Cass Freight Inc. suggests that there is a major downtrend in trading volume across the US and globally. FedEx's lowering their 2020 earnings guidance is not a mutually exclusive issue to the downtrend in trading volumes. Essentially, the worst case outcome of these two events is that, they can be seen as recession foreshadowing factors . Without a doubt their performance can be considered as fundamental to a healthy and growing economy. To wrap up this post just like every other one from my past 10 posts- since the summer and in the following quarters, expecting a speculation game . On the chart above the primary bullish FedEx targets are marked in case there's a US/China trade deal . Otherwise, as things stand, the most likely pattern is the drawn ABC . Depending on the timing of the bad news in the worst case, could expect a direct drop to ~60,65$. Keeping a close look at FedEx and the performance of some of the fundamental/defensive industries in the next couple of quarters will be essential . This is it for FedEx, hope at least someone found this post useful! I'd really appreciate any comments with insights on FedEx or similarly fundamental stocks. -Step_Ahead_ofthemarket- >>I do not share my ideas for the likes or the views. This channel is only dedicated to well informed research and other noteworthy and interesting market stories.>> However, if you'd like to support me and get informed in the greatest of details, every thumbs up and follow is greatly appreciated ! 1. Part two- US10Y, US 10 Year Treasury note Yield 2. The uptrend in VIX analysis : 3. FED Rates Supercyclical analysis : 4. US Industrials XLI : Full Disclosure: This is just an opinion, you decide what to do with your own money. For any further references or use of my content for private or corporate purposes- contact me through any of my social media channels.
NYSE:FDXShort
by step_ahead_ofthemarket
FedEx updatePrice currently at the uptrend line, which was confirmed. Also 50% retracement level. With recent earnings disappointing and news came out today that there will be no renewal deal with Amazon at the end of this month. While it is a good level for a buying opportunity, the stock seems to be more on the sell side for now. Major banks like Morgan Stanley and JP Morgan gave it a 'hold' rating and a price target of $143 and $173 respectively. So far, higher probability is that this stock will go lower, so maybe best to wait for the next support if this one breaks and buy then. Or short the break of the current 150 support level. Good Luck!
NYSE:FDX
by Antonio_trader
2
Chinese white paper, India in cross-hairs & Bank of Australia China releases white paper, India in the crosshairs, Bank of Australia decision China has maintained a paused after the US showed trade aggression, apparently, hoping to reach an agreement. Apparently, hopes were not justified. As a result, the so-called “White Paper” was born. The document, which sets out the position of China in order to negotiations with the United States on trade and economic issues. The main message is the following: China does not want a trade war with the United States, but will not avoid it if it is needed. Also, China quite clearly set forth its terms for a deal with the United States: the USA cancelling all duties on goods imported from China. In addition, China is gradually starting to counterattack. For instance, the investigation began against FedEx Corp. the other day. Huawei accused FedEx of sending two parcels with important commercial documents to the United States. According to the results of the investigations, FedEx Corp. may fall into the list of unreliable companies. Meanwhile, Trump is planning to open another front of the trade war - the Indian one. From June 5, the States may deprive India of the status of a country with a developing economy, which will exclude the possibility of duty-free export to the United States of more than 2,000 Indian goods. In general, everything is bad. Morgan Stanley analysts have warned about this that further growth in trade tensions may lead to negative US economic growth as early as Q3 2019. Therefore, our recommendations are: buying safe-haven assets (gold and Japanese yen) and selling the dollar. From the events of today, it is worth noting the Reserve Bank of Australia meeting, at which the Central Bank lowered the rate by 0.25%. This is definitely a bearish signal for the Australian dollar. Given the intensification of the trade war, while AUDUSD is below 0.70, we recommend looking for points for selling of AUDUSD on the intraday basis and the medium-term directions. Our positions for today: we are continuing to look for points for buying of the euro and the pound against the US dollar, sales of oil and the Russian ruble, as well as buying of gold and the Japanese yen. In addition, we will buy the Canadian dollar against the US dollar.
Short
by Trade24Fx
Watch how earnings are receivedWith earnings season kicking off this week you should be watching to see how the market reacts to the reports. The S&P 500 has been trading range-bound for the last couple days as it continues to retest the 2600 resistance. I expect that 2600 will continue to hold lots of sellers and a breakout is less likely than a breakdown. With Apple, Samsung, FedEx and the Airlines all coming out with negative revenue guidance in the last couple weeks I expect to see more bearish news in the coming earnings reports. Some will beat, as always, but its not IF they beat that's important. Whats important is how participants respond to said beats/misses. If you maintain a bearish view on equities like me, 2600 looks like the spot to short. What would be the most surprising is if markets just move sideways for the next month..
SP:SPXShort
by skyman9025
Potential Short in FDX Still trying to find my way through TA and trend following, I chose to scrutinize a company that I picked to be in my portfolio at my internship. Back in October, I looked at FDX for a long position to fill out a portfolio of blue chip dividend paying stocks for a model client portfolio. As luck would have it, the stock then rose from $170 to $200. I was happy with the result of the trend, however, as it approached $200, I felt uncomfortable keeping it in the portfolio. I thought it was overreached. This is where I fight the deep value investing principles of "buy and hold" with the trend following rules of riding profits and taking profits when the trend has run its course. I am still trying to find a middle ground, I am getting closer. Looking at the daily charts, FDX is hanging on to support at the 186.39 level. As of yesterday it crossed its 50 MA in a bearish manner, but I am looking for a confirmation and continuation of the bearish sentiment, and I like the probabilities. Fundamentally, I wanted to get rid of FDX due to increased debt accumulation, decreased cash, and negative free cash flows. With a PE Ratio of 26, its more expensive than 73% of its competitors. Its trading 3.26 times book value, putting it more expensive than almost 90% of its competitors. Cash to debt ratio has decreased each year over the last four years, going from 1.64 in 2013, to 0.26 in May 2016. Enterprise Value for FDX has increased over the last four years from 28,572 to 54,136 in 2016, that's a high price tag for 26 times earnings. For these reasons, I give more weight to the bearish probability outcome than I do the bullish one. Could the fact that I've found more shorting opportunities in larger cap "blue chip" stocks mean something for the overall market? I'm not sure. Would love some feedback. If FDX breaks current support, look to take profits around the 200 MA. Not the greatest Risk Reward Ratio: 1.49, but nevertheless, interesting to see what happens.
NYSE:FDXShort
by BrandonBeylo