This Shipping Stock Could Deliver Big Gains

Break through the February closing high should result in an easy trade to $110 for FedEx

   

FedEx Corp. (NYSE:FDX) — This shipping giant provides domestic and international air express for residential customers and heavy freight delivery for business. The company missed its fiscal Q2 earnings estimate by a penny due to Superstorm Sandy. But S&P maintains its fiscal year (FY) 2013 (ending in May) estimate of $6.50 and looks for $8.02 in FY 2014 with a 12-month target price of $122.

Technically, FDX has been consolidating in a saucer (rounding bottom) pattern for almost a year. Since October, upside volume has increased dramatically, and the stock executed a golden cross (long-term bullish signal) in November.

A break through the February closing high at $96.96 should result in an easy trade to $110. But the stock is volatile, so our buy under price is $92. Longer-term buyers should purchase FDX as a cornerstone holding and expect much higher gains.

Trade of the Day -- FedEx Corp. (NYSE:FDX)
Click to Enlarge

Trade of the Day Chart Key


Article printed from InvestorPlace Media, http://investorplace.com/2012/12/trade-of-the-day-fedex-corp-nyse-fdx/.

©2016 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.