FedEx Stock Delivers Earnings Beat, Bulls Follow

Year-over-year, the security already sports an over 152% lead

Digital Content Manager
Mar 19, 2021 at 10:24 AM
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The shares of FedEx Corporation (NYSE:FDX) are up 6.5% at $281.12 this morning, after the delivery concern reported better-than-expected fiscal third-quarter earnings of $3.47 per share -- higher than Wall Street's estimates of $3.23 per share -- as well as a revenue beat. The company attributed the positive results to higher prices, in addition to stronger volume from pandemic-fueled deliveries. In turn, the security earned no fewer than four price-target hikes this morning, with the highest from BofA Global Research and Credit Suisse to $351. However, it also received a price-target cut from UBS to $383 from $386.

On the charts, FedEx stock has taken a step back from its Dec. 9, all-time high of $305.60. Today's pop helped shares breach the $275 level for the first time since mid-December. Longer term, the equity sports a notable 152.4% year-over-year lead, with recent pullbacks caught by long-term support at the 160-day moving average.

Analysts are already optimistic towards the security, making today's bull notes all the more impressive. Of the 19 in question, 14 called FDX a "buy" or better, while five said "hold." Plus, the 12-month consensus target price of $328.42 is a 16.3% premium to current levels.  

The options pits are brimming with bullish activity today. So far, 26,000 calls have already crossed the tape, which is 15 times the average intraday amount, and nearly three times the number of puts traded. Most popular is the March 280 call, followed by the 300 call in the same monthly series, both of which expire at the end of the day.

Now seems like a good time to weigh in on FDX's next move with options, amid a post-earnings volatility crush. The stock's Schaeffer's Volatility Index (SVI) of 41% sits in the low 18th percentile of its annual range. This suggests the equity sports attractively priced premiums at the moment.

What's more, the equity's Schaeffer's Volatility Scorecard (SVS) sits at a high 84 out of 100, indicating FedEx stock has exceeded volatility expectations during the past year.

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