FedEx (FDX) stock is looking rock solid

5:50 am ET, 17 Sep 2018

FedEx Corporation (FDX) shares are trading at $249.45, up 1.41%.  The company is reporting its earnings results on Monday after the market close.  What's driving FDX stock price? What should investors know about FedEx ?

FedEx Corporation stock has yielded a return of 17% in the past year. The company has recently announced that it will boost ground operations in the U.S. to six days a week. This shows an increased demand from the e-commerce sector.

The bulls are confident about FedEx's business model which is very defensible and tough to replicate. The bears feel that the company's revenues will be hit by trade wars since FedEx derives around 30% of its topline from international trades. Revenue rose 10% to $17.3 billion in the last quarter results with earnings of $5.91 compared to $4.19 for the same period last year.

The next quarterly results will be released after market close on September 17, 2018.  For the upcoming report, the analysts expect the company to earn $3.81 per share on revenue of $16.88 billion. The company beat analyst estimates in three out of four previous quarters.

What is the sentiment towards the FDX stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is positive;
  • The long-term sentiment (9-12 months) is trending positive.

Over the last month, FedEx Corporation (FDX) returned +3.18%.

FedEx Corporation (FDX) average analyst price target ($291.08) is 16.69% above its current price ($249.45).

For the latest price and information on FedEx Corporation, please visit Finstead and search for "FDX price" or "FDX news".

FedEx Corporation (FDX) Stock Guide

Updated at: 8:42 pm ET, 17 Sep 2020

Before we start: if you're looking for FDX stock price, you can quickly find it out by visiting Finny and typing "FDX quote". If you're looking for a quick scoop on FDX stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "FDX". You'll get all this info in one place. Or you can just type "FDX news" to get the latest stock news.

Looking to buy or sell FedEx Corporation (FDX)? Interested in getting the full scoop on FDX, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this FDX stock guide, we'll address key questions about FDX, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are FDX earnings?
2. What is FDX dividend?
3. What is FDX dividend yield?
4. What is FDX stock forecast (i.e., prediction)?
5. FDX buy or sell? What is FDX Finny Score?
6. What are the reasons to buy FDX? Why should I buy FDX stock?
7. What are the reasons to sell FDX? Why should I sell FDX stock?
8. What are FDX key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are FDX earnings?

FDX trailing 12-month earnings per share (EPS) is $4.90.

2. What is FDX dividend?

FDX forward dividend is $2.60.

3. What is FDX dividend yield?

FDX forward dividend yield is 1.18%.

Analyst Predictions

4. What is FDX stock forecast (i.e., prediction)?

Based on FDX analyst price targets, FDX stock forecast is $199.04 (for a year from now). That means the average analyst price target for FDX stock is $199.04. The prediction is based on 28 analyst estimates.

The low price target for FDX is $100.00, while the high price target is $360.00.

FDX analyst rating is Buy.

Analysis

5. FDX buy or sell? What is FDX Finny Score?

#{finnyScore:50}Our quantitative analysis shows 4 reasons to buy and 4 reasons to sell FDX, resulting in Finny Score of 50.

6. What are the reasons to buy FDX? Why should I buy FDX stock?

Here are the reasons to buy FDX stock:

  • FedEx's huge air fleet, 50,000 drop boxes, and global operations knit together a massive presence unlikely to be replicated except by its few current competitors.
  • In addition to ground growth, resumption of higher margins in the LTL freight and international express businesses should boost revenue growth and consolidated operating margins, assuming some boost in international volume over current levels.
  • During its four-decade history, FedEx has weathered multiple economic cycles and oil supply crises. While short-term results may suffer, the firm's powerful network is here to stay.
  • The new tax law, which reduces corporate tax rate significantly, is a huge positive for FedEx. The new tax law was primarily responsible for the company increasing its earnings projection for fiscal 2018. For fiscal 2018, the company anticipates earnings per share (excluding TNT Express integration expenses and certain other items) in the range of $15-$15.40, higher than the previous projection of $12.70-$13.30.
  • We are impressed by the company's decision to reward shareholders through dividend payments and share buybacks. In June 2017, the company raised its quarterly dividend by 25% to 50 cents a share (or $2 annually) from 40 cents (or $1.60 annually). We expect FedEx to hike its quarterly dividend further shortly, in light of the savings induced by the Tax Cuts and Jobs Act.
  • FedEx experienced a highly successful holiday season driven by increased package volumes. We note that the company had left no stone unturned to perform well in the period. The company hired more than 50,000 seasonal workers to meet the surge in demand.
  • FDX profitability is improving. The YoY profit margin change was 2.01 percentage points. See FDX profitability chart.
  • FDX forward dividend yield is 1.18%, higher than the industry (0.63%) and sector (0.49%) forward dividend yields. See FDX forward dividend chart.
  • FDX forward P/E ratio is 17.64, which is low compared to its industry peers’ P/E ratios. See FDX forward P/E ratio chart.
  • FDX average analyst rating is Buy. See FDX analyst rating chart.

7. What are the reasons to sell FDX? Why should I sell FDX stock?

Let's look at the reasons to sell FDX stock (i.e., the bear case):

  • Although critical to growth, a high level of international exposure makes the firm vulnerable to downturns in global trade and political interference.
  • Operating one of the world's largest airlines is a highly capital-intensive endeavor, and air freighter replenishment will demand substantial capital expenditures during the next several years.
  • While fuel surcharges buffer much of the impact of rapid jet fuel and diesel price shocks, FedEx remains highly exposed to the price of crude oil.
  • We expect high costs to continue hurting FedEx's bottom line. Significant investments at the company's Ground unit are also pushing up costs. Capital expenses are expected to be $5.8 billion for fiscal 2018, higher than fiscal 2017 levels.
  • Shares of FedEx were negatively impacted following reports of Amazon.com testing a new business-to-consumer delivery service. Moreover, FedEx's operations have been continuously hurt by cyber attacks in 2017. Re-occurance of such events will hurt the stock.
  • FedEx is a highly leveraged company. This is indicated by the fact that the ratio of its long-term debt-to-equity (expressed as a percentage) currently stands at 84.8. This compares unfavorably to the figure of 81.5 for the S&P 500 Index.
  • FDX stock price ($244.08) is close to the 52-week high ($254.72). Perhaps now is a good time to sell? See FDX price chart.
  • FDX quarterly revenue growth was -2.50%, lower than the industry and sector average revenue growth (1.13% and 1.01%, respectively). See FDX revenue growth chart.
  • FDX Price/Book ratio is 3.23, which is high compared to its industry peers’ P/B ratios. See FDX forward Price/Book ratio chart.
  • FDX average analyst price target ($199.04) is below its current price ($244.08). See FDX price target chart.

Key Stats

8. What are FDX key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for FDX:

Metrics FDX
Price $244.17
Average Price Target / Upside $199.04 / -18.48%
Average Analyst Rating Buy
Forward Dividend Yield 1.18%
Industry Integrated Shipping & Logistics
Sector Industrials
Number of Employees 227,000
Market Cap $59.07B
Forward P/E Ratio 17.64
Price/Book Ratio 0.85
Revenue (TTM) $69.22B
YoY Quarterly Revenue Growth -2.50%
Profit Margin 1.86%

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