- FedEx (FDX) is trading at a new all-time high and has strong technical momentum.
- Shares are up more than 50% over the past 52 weeks.
- FDX maintains a 100% “Buy” opinion from Barchart.
- Despite robust growth prospects, analyst price targets for FDX range widely, reflecting significant valuation uncertainty amid strong investor sentiment and low short interest.
Today’s Featured Stock
Valued at $91.34 billion, FedEx (FDX) is the leader in global express delivery services. The company provides a broad portfolio of transportation, e-commerce, and business services.
The company is currently reporting primarily through its FedEx Express, FedEx Logistics, FedEx Dataworks, FedEx Office, and FedEx Freight segments. FedEx Express offers time-definite delivery to more than 220 countries and territories, connecting markets that comprise almost the entire gross domestic product of the world.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. FDX checks those boxes. Since the Trend Seeker issued a new “Buy” on Jan. 21, shares are up 25.95%.
Barchart Technical Indicators for FedEx
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
FedEx scored an all-time high of $391.65 on Feb. 23.
- FDX has a Weighted Alpha of +72.93.
- FedEx has a 100% “Buy” opinion from Barchart.
- The stock has gained 52.89% over the past 52 weeks.
- FedEx has its Trend Seeker “Buy” signal intact.
- The stock recently traded at $386.29 with a 50-day moving average of $323.03.
- FDX has made 17 new highs and is up 27.42% over the past month.
- Relative Strength Index (RSI) is at 80.40.
- There’s a technical support level around $378.78.
Don’t Forget the Fundamentals
- $91.34 billion market capitalization.
- 19.92x trailing price-earnings ratio.
- 1.51% dividend yield.
- Revenue is expected to grow 5.40% this year and another 4.12% next year.
- Earnings are estimated to increase 16.46% next year.
Analyst and Investor Sentiment on FedEx
- The Wall Street analysts followed by Barchart gave the stock 17 “Strong Buy,” 2 “Moderate Buy,” 7 “Hold,” and 1 “Sell” opinions with price targets between $219 and $479. This is a very wide range!
- Value Line rates the stock “Highest” with price targets between $179 and $450 – a wide range here too.
- CFRA’s MarketScope rates the stock a “Sell” with a price target of $257.
- Morningstar thinks the stock is 42% overvalued with a fair value of $272.
- 4,584 investors following the stock on Motley Fool think it will beat the market while 755 think it won’t.
- 110,310 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
- Short interest is only 1.40% of the float with 1.71 days to cover the float.
The Bottom Line on FedEx
Knowing the growth projections of online shopping, there is no doubt that FedEx will be around for a long time. The wide range of price targets gives me a lot of concern. How do so many analysts come up with such different targets?
However, short sellers aren’t betting against FDX, and I’m not either.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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