FedEx Story

FDX -- USA Stock

USD 254.44 4.27 1.71%

Macroaxis Story

As many millenniums are trying to avoid industrials space, it makes sense to break down FedEx a little further and try to understand its current market patterns. As expected, FedEx is starting to reaffirm its true potential as investors are becoming more and more confident in the future outlook. The returns on the market and returns on FedEx appear slightly correlated for the last few months. Strong basic indicators of the company may also suggest signals of long term gains for FedEx investors. FedEx is scheduled to announce its earnings today. The next earnings report is expected on the 15th of December 2020. The stock is in a buyout trend.

Published over a week ago

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Should I shadow FedEx (NYSE:FDX) investors?

The company's average rating is Buy from 21 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on FedEx market sentiment investors' perception of the future value of FedEx. Let us look at a few aspects of FedEx technical analysis. About 75.0% of the company shares are owned by institutional investors. The book value of FedEx was currently reported as 69.84. FedEx has Price/Earnings To Growth (PEG) ratio of 2.2. The entity last dividend was issued on the 3rd of September 2020. The firm had 2:1 split on the 7th of May 1999.

Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of FedEx. In general, we focus on analyzing FedEx stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build FedEx's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of FedEx's intrinsic value. In addition to deriving basic predictive indicators for FedEx, we also check how macroeconomic factors affect FedEx price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.

How does FedEx Stands against Peers?

Analyzing FedEx competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to FedEx across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.

Check out FedEx Competition Details

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for FedEx, but it might be worth checking our own buy vs. sell analysis

Exercise or conversion by Henry Maier of 8830 shares of FedEx subject to Rule 16b-3

Legal trades by FedEx insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

FedEx insider trading alert for exercise of non-qualified stock option (right to buy) by Henry Maier, President and CEOFedEx Ground, on 23rd of September 2020. This event was filed by Fedex Corp with SEC on 2020-09-23. Statement of changes in beneficial ownership - SEC Form 4. Henry Maier currently serves as president and chief executive officer of fedex ground of FedEx [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Closer look at FedEx Downside Variance

FedEx has current Downside Variance of 7.28. Downside Variance (or DV) is measured by target semi-variance and is termed downside volatility. It is expressed in percentages and therefore allows for rankings in the same way as variance. One way to view downside volatility is the annualized variance of returns below the target.

Downside Variance is the probability-weighted squared below-target returns. The squaring of the below-target returns has the effect of penalizing failures at an exponential rate. This is consistent with observations made on the behavior of individual decision-making under.

Downside Variance

SUM(RET DEV)²

N(ER)

7.28

SUM	=	Summation notation
RET DEV	=	Actual returns deviation over selected period
N(ER)	=	Number of points with returns less than expected return for the period

Let's now compare FedEx Downside Variance to its closest peers:

FDX

ECHO

EXPD

FWRD

	FDX	7.28
	ECHO	10.01
	EXPD	2.66
	FWRD	5.32

Will FedEx continue to rise?

The treynor ratio is down to 1.65 as of today. FedEx currently demonstrates below-verage downside deviation. It has Information Ratio of 0.25 and Jensen Alpha of 0.75. However, we do advice investors to further question FedEx expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Bottom Line On FedEx

While some other companies within the integrated freight & logistics industry are still a little expensive, even after the recent corrections, FedEx may offer a potential longer-term growth to investors. To summarize, as of the 15th of September 2020, we believe that at this point, FedEx is undervalued with below average chance of financial distress within the next 2 years. Our up-to-date 'Buy-vs-Sell' recommendation on the company is Strong Buy.

About Contributor

Achuva Shats is a Member of Macroaxs Editorial Board. Achuva writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of FedEx. Please refer to our Terms of Use for any information regarding our disclosure principles.

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FedEx Story

USD 254.44 4.27 1.71%

How does FedEx Stands against Peers?

What do experts say?

Exercise or conversion by Henry Maier of 8830 shares of FedEx subject to Rule 16b-3

Closer look at FedEx Downside Variance

Will FedEx continue to rise?

Our Bottom Line On FedEx

About Contributor

Would you like to provide feedback on the content of this article?

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