FedEx (FDX) Offering Possible 63.93% Return Over the Next 22 Calendar Days

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 63.93% return on risk over the next 22 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 $1.95 would be kept by the premium seller. The risk of $3.05 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 63.26 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

Full Steam Ahead for U.S. Commerce Means Vital Economic Support
Tue, 22 Sep 2020 09:00:01 +0000
(Bloomberg) — Supply Lines is a daily newsletter that tracks Covid-19’s impact on trade. Sign up here, and subscribe to our Covid-19 podcast for the latest news and analysis on the pandemic.America’s network for moving goods into and around the country is the busiest in years after being throttled by the pandemic, providing vital support for an economic rebound that’s moderating in other areas.Ports are seeing a flood of container imports while railroads and trucks rush those goods — as well as domestically produced merchandise and materials — to distribution points. The surge in activity has its roots in the shutdown of the economy that left businesses reliant on inventories, which are now extremely lean as demand accelerates.The restocking has led to record container imports into the Port of Los Angeles and boosted intermodal carload numbers for the nation’s railroads. It all adds up to vital support for the economic rebound amid a stalemate over government relief and the lack of a coronavirus vaccine.Steady factory production and a busy transportation network will help fuel hiring, hours worked and incomes. That, in turn, can further bolster consumption, which has slowed from rapid gains from the depths of the pandemic.“A positive feedback loop is under way,” Neil Dutta, head of U.S. economic research at Renaissance Macro Research, said in a email. “It can be especially strong this time around since the inventory shortfall is quite large.”At the Port of Los Angeles, the biggest U.S. container port, imports of 20-foot equivalent units climbed to an all-time high of 516,286 in August. With economies around the world stirring to life and looking to restock, shipping costs have accelerated and, by one measure, are the highest in eight years.Since May, “there has been a significant replenishment of warehouse inventories,” Gene Seroka, the port’s executive director, said in a statement. “Coupled with retailers planning for consumer holiday spending, it has created a surge of imports.”Railroad car loadings have increased in concert with the pickup in seaborne trade. It’s also been powered by retailer preparations for the holiday-shopping season and a shift in consumer shopping preferences to the internet from the storefront.Union Pacific Corp. Chief Executive Officer Lance Fritz told a conference Sept. 9 that “demand is at or near peak season levels,” driven by e-commerce and inventory restocking.Railroads have benefited from a tight trucking market. A gauge of U.S. trucking conditions, which includes measures of freight volumes, rates and capacity, rebounded sharply in June. While the index cooled in July, “the near-term outlook remains favorable for carriers,” Avery Vise, vice president of trucking for Freight Transportation Research Associates, said on the company’s website.FedEx Corp. expects “a peak holiday shipping season like no other in our company’s history,” Chief Operating Officer Rajesh Subramaniam said on the company’s earnings call last week. He also said FedEx will add 70,000 jobs across the U.S.The jump in e-commerce prompted the package-delivery company to pull forward by three years to 2023 its forecast for when U.S. shipments will total 100 million a day. FedEx said on the call that services spending has shifted to goods, and pent-up demand has given that a boost.Investors have taken notice. The rush to replenish from both international and domestic producers powered the Dow Jones Transportation Average to a record high last week, though it’s since pulled back with the rest of the stock market.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Analyst Report: Fedex Corp
Tue, 22 Sep 2020 00:00:00 +0000
FedEx Corp. is a leading international provider of package delivery, e-commerce and related services. The company's business segments are FedEx Express, FedEx Ground and FedEx Freight. The company has 678 aircraft, more than 180,000 motorized vehicles and more than 500,000 employees.

Market Digest: FDX, TXN, CERN, EQR, JWN, ORCL
Tue, 22 Sep 2020 00:00:00 +0000
Volatility and sector rotation continue to rule the day in major stock indices. If you owned nothing but the stocks in the Dow Jones Industrial Average last week, it was a 'whatever' few days. If you owned nothing but the stocks in the Nasdaq Composite, not so much. Insider-sentiment gauges from Vickers Stock Research pretty much mirror that pattern.

Federal Express Corporation — Moody's announces completion of a periodic review of ratings of FedEx Corporation
Mon, 21 Sep 2020 22:06:04 +0000
Moody's Investors Service (“Moody's”) has completed a periodic review of the ratings of FedEx Corporation and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.

Has FedEx Turned a Corner?
Mon, 21 Sep 2020 19:42:08 +0000
Much stronger results in its latest quarter may indicate the company's initiatives are paying off

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