FedEx Story

<div class='circular--portrait' style='background:#8B008B;color: #ffffff;font-size:3em;'>FDX</div>
FDX -- USA Stock  

USD 252.56  3.71  1.45%

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 three months 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.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of FedEx's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of FedEx in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as FedEx. Your research has to be compared to or analyzed against FedEx's peers to derive any actionable benefits. When done correctly, FedEx's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in FedEx.

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

FedEx exotic insider transaction detected

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 general transaction of common stock by Frederick Smith, ChairmanCEO, on 10th of January 2021. This event was filed by Fedex Corp with SEC on 2021-01-07. Statement of changes in beneficial ownership - SEC Form 4. Frederick Smith currently serves as chairman of the board, chief executive officer 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 = 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:

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

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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