Analysts Circle FDX After Impressive Earnings Beat

No less than ten analysts lifted their price targets on FedEx

Digital Content Manager
Jul 1, 2020 at 9:26 AM
facebook twitter linkedin

Shipping name FedEx Corporation (NYSE:FDX) entered the earnings confessional last night, posting fiscal fourth-quarter profits and revenue that trounced analysts' expectations. The firm cited a lockdown-related spike in home deliveries and said it is currently contending with a flood of e-commerce shipment tied to the coronavirus. As a result FDX is up 10.9% to trade at $159.53. 

The news sparked a deluge of bull notes. No less than 10 analysts lifted their price targets. The highest came from J.P. Morgan Securities to $188 from $145. The brokerage firm also upgraded FDX to "overweight" from "neutral."

Coming into today, FDX's 12-month consensus price target of $162.64 sat at just a 3.8% premium to it's Tuesday close, suggesting the equity was already ripe for a round of price-target hikes. There could be room for upgrades, though. Eleven of the 19 covering FedEx called it a "hold," compared to just eight "buy" or better ratings. 

Options traders, meanwhile, have been quite call-heavy, with 19,215 calls across the tape in the past 10 days, compared to 10,928 puts. Meanwhile, FedEx's Schaeffer's open interest ratio (SOIR) of 0.74 sits higher than just 6% of readings from the past year, suggesting short-term options players have rarely been more call-biased. 

Today, FedEx stock is set to topple its 200-day moving average -- a trendline it's been butting up against for the better part of two years. From below, the 40-day moving average is providing some solid support on the charts, while the $130 mark has also emerged as a floor. On top of this, FDX is set to climb back atop its year-to-date breakeven near the $150 level. 



Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1