Fedex Stock Story

FDX
 Stock
  

USD 233.81  6.28  2.62%   

As many rational traders are trying to avoid industrials space, it makes sense to break down Fedex Corp a little further and understand how it stands against Johnson Johnson and other similar entities. We are going to inspect some of the competitive aspects of both Fedex and Johnson.
Published few days ago
View all stories for Fedex Corp | View All Stories

Fedex Corp Current Investor Sentiment

Investor biases related to Fedex Corp's public news can be used to forecast risks associated with investment in Fedex. The trend in average sentiment can be used to explain how an investor holding Fedex can time the market purely based on public headlines and social activities around Fedex Corp. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Fedex Corp's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Fedex Corp's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Fedex Corp's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Fedex Corp.

Fedex Corp Maximum Pain Price across 2022-07-01 Option Contracts

Fedex Corp's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Fedex Corp close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Fedex Corp's options.
Our viewpoint on Fedex Corp (NYSE:FDX) and Johnson Johnson (NYSE:JNJ)?
By analyzing existing fundamental indicators between Fedex Corp and Johnson, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Johnson with a short position in Fedex Corp. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Fedex Corp has an asset utilization ratio of 199.48 percent. This suggests that the company is making $1.99 for each dollar of assets. An increasing asset utilization means that Fedex Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Fedex or American is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending Fedex Corp dividends

A dividend is the distribution of a portion of Fedex Corp earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Fedex Corp dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Fedex one year expected dividend income is about $0.22 per share.
Dividend Yield is likely to rise to 0.009937 in 2022, whereas Payment of Dividends and Other Cash Distributions is likely to drop (666.1 M) in 2022.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-617.4 M-666.1 M
Dividend Yield 0.0092  0.009937 
Dividends per Basic Common Share 2.99  2.44 
Investing in stocks that pay dividends, such as stock of Fedex Corp, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Fedex Corp must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Fedex Corp. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Fedex Corp's Liquidity

Fedex Corp financial leverage refers to using borrowed capital as a funding source to finance Fedex Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Fedex Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Fedex Corp's total debt and its cash.

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 Corp, but it might be worth checking our own buy vs. sell analysis

Correlation Between Fedex and American Express

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Fedex Corp together with similar or unrelated positions with a negative correlation. For example, you can also add American Express to your portfolio. If American Express is not perfectly correlated to Fedex Corp it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Fedex Corp for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between FDX and AXP for more information.

Note

Are you currently holding both Fedex Corp and American Express in your portfolio?
Please note if you are using this as a pair-trade strategy between Fedex Corp and American Express, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Exercise or conversion by Frederick Smith of 198675 shares of Fedex Corp subject to Rule 16b-3

Legal trades by Fedex Corp 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 Frederick Smith, ChairmanCEO, on 3rd of May 2022. This event was filed by Fedex Corp with SEC on 2022-05-03. Statement of changes in beneficial ownership - SEC Form 4. Frederick Smith currently serves as chairman of the board, chief executive officer of Fedex Corp [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.

Is Fedex Corp valued reasonably by the market?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Fedex Corp revenue. Based on the latest financial disclosure, Fedex Corp reported 91.68 B of revenue. This is much higher than that of the Industrials sector and significantly higher than that of the Integrated Freight & Logistics industry. The revenue for all United States stocks is significantly lower than that of Fedex Corp. As for Johnson Johnson we see revenue of 94.88 B, which is much higher than that of the Integrated Freight & Logistics

Fedex91.68 Billion
Sector0.0
Johnson94.88 Billion
91.7 B
Fedex
Sector
94.9 B
Johnson

Fedex Corp has 83 percent chance to slide way below $224 in July

The mean deviation is down to 1.98 as of today. Fedex Corp currently demonstrates below-average downside deviation. It has Information Ratio of 0.09 and Jensen Alpha of 0.29. However, we advise investors to further question Fedex Corp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Fedex Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Fedex Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Fedex Corp Implied Volatility

Fedex Corp's implied volatility exposes the market's sentiment of Fedex Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Fedex Corp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Fedex Corp stock will not fluctuate a lot when Fedex Corp's options are near their expiration.

The Current Takeaway on Fedex Corp Investment

While some other firms in the integrated freight & logistics industry are either recovering or due for a correction, Fedex Corp may not be performing as strong as the other in terms of long-term growth potentials. With an optimistic outlook on your 90 days horizon, it may be a good time to acquire new shares of Fedex or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Fedex Corp.

Editorial Staff

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 Raphi Shpitalnik do not own shares of Fedex Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com