FedEx's most recent trend suggests a bullish bias. One trading opportunity on FedEx is a Bull Put Spread using a strike $240.00 short put and a strike $235.00 long put offers a potential 44.93% return on risk over the next 20 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $240.00 by expiration. The full premium credit of $1.55 would be kept by the premium seller. The risk of $3.45 would be incurred if the stock dropped below the $235.00 long put strike price.
The 5-day moving average is moving up which suggests that the short-term momentum for FedEx is bullish and the probability of a rise in share price is higher if the stock starts trending.
The 20-day moving average is moving up which suggests that the medium-term momentum for FedEx is bullish.
The RSI indicator is at 68.41 level which suggests that the stock is neither overbought nor oversold at this time.
To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here
LATEST NEWS for FedEx
Is FedEx Corporation (FDX) A Good Stock To Buy?
Tue, 08 Sep 2020 14:42:27 +0000
We know that hedge funds generate strong, risk-adjusted returns over the long run, which is why imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, professional investors have to conduct complex analyses, spend many resources and use tools that are not […]
Benzinga's Bulls And Bears Of The Week: Apple, Costco, FedEx And More
Sun, 06 Sep 2020 13:17:36 +0000
* Benzinga has examined the prospects for many investor favorite stocks over the past week. * This past week's bullish calls included pharmaceutical and package delivery leaders. * Tech giants and top airlines were among last week's bearish calls.The stock market started last week with a bit of a facelift, and it turned out to be another volatile week, with Dow Jones industrials and the S&P 500 ending around 2% lower and the Nasdaq down more than 3%. It was also a week that saw the headlong race for a coronavirus vaccine continue, as well as jobs numbers that were not as bad as feared.As usual, Benzinga continues to examine the prospects for many of the stocks most popular with investors. Here are some of this past week's most bullish and bearish posts that are worth another look.Bulls Shanthi Rexaline's "Why Morgan Stanley Is Buying The Dip In Eli Lilly" shows why the recent pullback in its shares makes the valuation of Eli Lilly And Co (NYSE: LLY) more attractive.In "BofA Raises FedEx Price Target For Second Time In 2 Weeks," Wayne Duggan shares some of the tailwinds that FedEx Corporation (NYSE: FDX) stock appears to have for the rest of the year.Robust monthly sales at Costco Wholesale Corporation (NASDAQ: COST) make a strong case for outperformance, according to Chris Katje's "Why Costco Shares Hit A New 52-Week High." Is a special dividend in the cards?"Educational Stocks: Top Back-To-School Pick?" by Ben Broadwater discusses how back-to-school shopping has changed due to the pandemic, making Logitech International SA (NASDAQ: LOGI) a top pick.For additional bullish calls, also have a look at Why The Federal Reserve's New Approach To Inflation Makes Sense and US Electric Truck Sales Set To Rise 27-Fold In 6 Years, Research Says.Bears In Wayne Duggan's "'Nothing Short Of Stupid,' Hedge Fund Manager Says Of Post-Split Gains In Apple And Tesla," one expert doesn't mince words about post-split Apple, Inc. (NASDAQ: AAPL) and Tesla Inc (NASDAQ: TSLA) investors.Attorney General William Barr pushes for charges against the Alphabet Inc (NASDAQ: GOOGL) subsidiary. So says "Justice Dept To Unveil Antitrust Charges Against Google Later This Month: NYT" by Shivdeep Dhaliwal."BofA Says More Airline Capacity Cuts Ahead" by Priya Nigam discusses what the end of summer could mean for shares of American Airlines Group Inc (NASDAQ: AAL) and its industry peers.Aditya Raghunath's "GSX Techedu Shares Drop 13.6% As SEC Probes Short Seller Claims Of Tampered Earnings" indicates that GSX Techedu Inc (NYSE: GSK) sales numbers are being probed.Be sure to check out BofA Sets 3,250 Year-End S&P 500 Target and The Investing Upsides, Downsides If Trump Is Reelected for additional bearish calls.Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.See more from Benzinga * Notable Insider Buys Last Week: Avis Budget, Axis Capital And More * Barron's Picks And Pans: McDonald's, Salesforce, Starbucks And More * Benzinga's Bulls And Bears Of The Week: Apple, Salesforce, Tesla And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tony Zhang Advises Viewer On FedEx Ahead Of Earnings
Sun, 06 Sep 2020 12:46:26 +0000
A viewer of CNBC's "Options Action," asked the trading panel a question about FedEx Corporation (NYSE: FDX). The company is going to report earnings on Sept. 15 and the viewer, who sold the October $210/200 put spread in FedEx, wants to know what to do with the position going into earnings.Tony Zhang said he likes FedEx as it held up pretty well during the sell-off. Regarding the position, Zhang thinks that the viewer's actions depend on his cost basis. If he has already collected more than 50% of the maximal profit on the put spread, it's time to take profits. Otherwise, it makes sense to hold the position through earnings.Carter Worth also commented on the stock. He said it's the number one constituent of the Dow Jones Transport Index, which had a very big day up on Friday. Worth likes the stock.See more from Benzinga * Todd Gordon Weighs In On FedEx And UPS * 'Halftime Report' Trades Discuss Morgan Stanley, Nike And More * Jon Najarian Sees Unusual Options Activity In FedEx And Melco(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Amazon Has a Growth Problem: Buy if ‘Good’ Is Good Enough for You
Fri, 04 Sep 2020 18:34:56 +0000
Amazon (NASDAQ:AMZN) stock has seen king-sized gains since the start of the coronavirus pandemic. Sales in the second quarter boomed 40% as people turned to e-commerce for daily needs, pumping up shares over 105%.Source: Eric Broder Van Dyke / Shutterstock.com Yet, something strange has happened to the e-commerce king this summer. Over the past several months, Amazon has gradually gotten lumped in with the likes of McDonald's (NYSE:MCD), Target (NYSE:TGT) and other blue-chip companies.And for a good reason. Investors buying Amazon today will own a very different company than they would have 10 years ago. Gone are the days of sustained 30% annual growth. While AMZN stock still shows long-term upside, investors will have to get used to Amazon as a slower-growing blue-chip company. So here's why, at $3,500, Amazon is showing signs of slowing down.InvestorPlace – Stock Market News, Stock Advice & Trading Tips AMZN Stock: A Story of Slowing GrowthWhile Amazon's sales have skyrocketed during the pandemic, analysts are starting to model in just 15%-20% growth beyond 2021.Things weren't always this way. Between 2006 and 2018, Amazon grew revenues at 29% and EBITDA at 34% annually, earning the company an "A" grade on my Quantitative Stock Rank (QSR) system. Few companies have managed that increase for so many years. * 9 Outbreak-Fueled Stocks to Buy This Week Yet, as a massive $1.6 trillion company, growth has naturally slowed. In 2019, Amazon grew revenues at just 20%. That's still faster than 89% of all other companies in my QSR universe but slower than smaller tech upstarts such as Zoom (NASDAQ:ZM), Carvana (NYSE:CVNA) and Etsy (NASDAQ:ETSY) which averaged 75% growth through mid-2020).Much of this has to do with e-commerce market saturation. In 2019, American consumers spent 10.9% of total retail sales online. By the end of 2020, analysts estimate that the number will jump to 14.5%. Such a fast change would have been meaningful a couple of years ago. Today, however, Amazon generates so much revenue ($321 billion, to be precise), that the company needs huge gains to move its needle.Source: Data courtesy of Gurufocus Slowing Growth, Higher QualitySlowing growth, however, doesn't mean Amazon has turned into a bad investment.Far from it.The company has used its massive scale to solidify its lead in e-commerce fulfillment. RBC Capital Markets, an investment bank, estimates that Amazon can now deliver the same day to 72% of the U.S. population.The company's lead has shined through in its financial figures. Third-party marketplace sales now account for 53% of company revenues, and analysts estimate that Amazon's share of U.S. e-commerce will rise to 50% by 2021.Source: Data courtesy of Statista.comThese factors have helped drive EBITDA margins from 6.5% in 2008 to 12.7% in 2019. Over the next five years, Morningstar, a corporate rating agency, estimates that margins will almost double again. (Amazon has famously kept margins low by reinvesting heavily into its business)In other words, AMZN stockholders have invested in one of the widest-moat companies available in the world.Adjusting these figures gives Amazon a "B+" in financial strength, a phenomenally high score in an industry marked by exceptionally high capital expenditures. FedEx (NYSE:FDX), by comparison, earns a "C+." What's Wrong with AMZN Stock at $3,500?One word: price.In the QSR "value-for-money" score, AMZN earns a mediocre "D+." That's because, at 41 times EV/EBITDA, the company falls in the top-10% of most expensive U.S. companies.To justify its current value, Amazon would have to compound growth at 14% and triple its EBITDA over 10 years. The company would also have to slow working capital growth significantly, netting its capital requirements to zero over the long run.That won't be easy for the e-commerce giant. For instance, in 2019, the company plowed $16 billion into property, plant and equipment (PP&E), and another $2.4 billion into working capital. (This was on just $14 billion in operating income.) In other words, the company had to sink $1.30 of investment to generate just $1 of income.At today's nosebleed valuations, investors are betting that AMZN's cash investments in logistics and server networks will eventually slow. That's a reasonable assumption — most young companies eventually age past their "growth" phase. UPS (NYSE:UPS), for instance, spent just 74 cents of investment to generate $1 of income over the past 12 months. Amazon's final number could end up even lower.But suppose it turns out Amazon's infrastructure projects have an insatiable appetite for cash. In that case, the financial drain could decrease AMZN stock fair value by 35% or more. Has "Good" Become the New "Great"?Should Investors Buy AMZN Stock for 2021?Once we account for Amazon's artificially low EBITDA margins, the company scores a decent "B+" in my QSR scoring methodology. That signals above-average future returns, but not eye-popping 1,000%-per-year lottery payouts. (To put things in perspective, a 1,000% return on Amazon stock would push its market capitalization to $17.6 trillion, or almost one full year of U.S. GDP)Source: Data courtesy of GurufocusAmazon is still a great business: investors should expect Amazon to win massively in e-commerce, cloud computing, and digital media. A decade from now, Amazon will almost certainly still dominate the global retail industry.But when it comes to the company's stock, investors should brace for good (not great) future returns. And if "good" is good enough for you, then AMZN stock remains one of the bluest blue-chip companies today. But if you're looking for "A+" returns, you'll have to consider smaller, faster-growing companies.On the date of publication, Tom Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article.Tom Yeung, CFA, is a registered investment advisor on a mission to bring simplicity to the world of investing. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Amazon Has a Growth Problem: Buy if 'Good' Is Good Enough for You appeared first on InvestorPlace.
BofA Raises FedEx Price Target For Second Time In 2 Weeks
Fri, 04 Sep 2020 17:37:00 +0000
FedEx Corporation (NYSE: FDX) traded slightly higher on Friday after one analyst raised his price target for the stock ahead of the company's earnings report later this month.The Analyst: Bank of America analyst Ken Hoexter reiterated his Buy rating and raised his price target for FedEx from $235 to $250.The Thesis: Hoexter, who previously raised his price target from $177 to $235 on Aug. 20, said FedEx's plan to hire 70,000 seasonal workers ahead of peak delivery season represents a 27% increase compared to a year ago and suggests strong volume trends heading into the second half of the year.Hoexter is also bullish on the expansion of FedEx's Sunday residential delivery coverage, which the company says will reach 95% of the U.S. population by mid-September, on par with its current 96% Saturday coverage. Hoexter said this Sunday coverage differentiates FedEx from competitor United Parcel Service, Inc. (NYSE: UPS), which only offers limited Sunday delivery via SmartPost."With increased B2C demand and conversion of a portion of Express deliveries into its Ground network, we target Ground deliveries to increase 15% y-y in F1Q (following a 25% gain in F4Q) & Ground margins to expand 20 bps sequentially, as June 1 COVID surcharges are offset by higher cost residential delivery," Hoexter wrote in the note.FedEx is projecting U.S. package delivery will reach 100 million units per day by 2023, with e-commerce accounting for 96% of that growth. Hoexter said other retailers will likely follow Walmart Inc (NYSE: WMT) in aggressively pushing for same-day delivery services in the coming years.Benzinga's Take: FedEx is expected to report earnings on Sept. 13\. While delivery trends have been exceptional in 2020, investors should keep in mind that the market is already pricing in some impressive numbers with FedEx stock up 60.9% in the past three months alone.Related Links:BofA Raises FedEx Expectations, Sees Improving Airfreight Price Environment Trump's Battle Over US Postal Service Funding: What You Need To KnowLatest Ratings for FDX DateFirmActionFromTo Sep 2020BerenbergUpgradesHoldBuy Aug 2020CitigroupMaintainsBuy Aug 2020BernsteinUpgradesMarket PerformOutperform View More Analyst Ratings for FDX View the Latest Analyst Ratings See more from Benzinga * This Day In Market History: NYSE Launches Decimal Quotes * Trump's Battle Over US Postal Service Funding: What You Need To Know * Workhorse CFO Talks USPS Contract, Says Company Has 2-Year Lead On Competitors(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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