FedEx Corporation

FDX
Delayed Nyse - 10/18 10:00:51 pm
149.91USD
-0.52%

Resistance levels that will be difficult to break

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David Meurisse
Contributor / Partner

Strategy published on : 09/16/2019 | 10:18

short sell
Target price hit

Entry price : 173.729$
Target : 162.1$
Stop-loss : 181$
Potential : 6.69%

FedEx Corporation shares trade close to a major resistance zone that is situated around 149.53 USD. This zone should be difficult to break through, which in turn suggests a corrective move ahead.
Investors should open a short trade and target the $ 162.1.

Strengths

● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.

● Analysts covering this company mostly recommend stock overweighting or purchase.


Weaknesses

● The stock is close to a major daily resistance at USD 176.01, which should be gotten rid of so as to gain new appreciation potential.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.

● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.

● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.

● For the past year, analysts have significantly revised downwards their profit estimates.

● Below the resistance at 188.06 USD, the stock shows a negative configuration when looking looking at the weekly chart.

Zonebourse.com 2019
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