FedEx Slapped With Bear Note Before Earnings

The shipping giant is expected to release its quarterly report after the close tomorrow

Digital Content Manager
Mar 16, 2020 at 2:36 PM
facebook X logo linkedin

With earnings due out after the close tomorrow, March 17, FedEx Corporation (NYSE:FDX) is struggling to overcome today's steep selloff, last seen down 11.6% at $94.24. Not helping matters is a price target cut from UBS Group to $141 from $187, though this new forecast still stands much higher than FDX's current perch. 

UBS' bear note puts the consensus 12-month price target at $163.25 -- a healthy 73.5% premium to current levels. Plus, six of the 19 analysts in coverage consider the shipping name a "buy" or better, with not a single "sell" to be seen, which could leave the door wide open for downgrades following tomorrow's report. 

The options pits have also been surprisingly bullish. In the last 10 weeks, 2.44 calls were picked up for every put at the the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than all other readings from the past year, meaning options players haven't been more bullish during the last 12 months. 

Speaking of post-earnings sessions, a look at the last two years shows FedEx ending lower the day after earnings roughly 87% of the time, and averaging a next-day move of 6.3% regardless of direction. This time around, the option pits are pricing in a 23% post-earnings swing. 

Much like the rest of Wall Street, FedEx has been stringing together a series of record lows, and today is no exception. The equity just hit a six-year bottom of $90.86 earlier today and is already on pace for its worst month in over ten years, now off 31.6% for March.   





Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI