Analysts and options bulls are chiming in on the FedEx's upbeat results
FedEx Corp (NYSE:FDX) stock is up 2.5% to trade at $363.42 at last glance, after the shipping giant reported fiscal third-quarter profits of $5.25 on revenue of $24 billion, handily beating expectations. The company also raised its full-year earnings outlook and scored no fewer than 11 price-target hikes, the highest from Bernstein to $466 from $457.
FDX traded as high as $383.18 out of the gate, but has pared those bigger gains. Nevertheless, the shares are eyeing their fourth gain in the last five sessions and are headed back toward their Feb. 27, all-time high of $392.86. Year over year, FedEx stock is down 32%.
Options traders lean bearish, suggesting an unwinding of this pessimism could boost FDX. This is per the equity's 50-day put/call volume ratio of 1.41 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that ranks in the 96th percentile of its annual range.
Overall options volume is already running at 20 times the intraday average amount, with 17,000 calls and 11,000 puts exchanged so far. The most active contract is the expiring March 385 call, with new positions opening there.