FedEx Could Deliver Much Higher Returns

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FedEx Corp. (NYSE:FDX) — This package delivery giant provides both 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 has increased its fiscal year (FY) 2013 (ended in May) estimate from $6.50 to $6.67, and it looks for $8.07 in FY 2014. And S&P also revised its 12-month target price from $122 to $129.

Technically, FDX consolidated in a saucer, or 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.

On Dec. 21, the Trade of the Day said, “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.”

The stock traded under $92 for several days, and on Jan. 9, broke the February high. Volume confirmed the breakout, and so the trading target is reaffirmed at $110. Longer-term buyers should purchase FDX as a cornerstone holding and expect much higher prices.

Trade of the Day - FedEx Corp. (NYSE:FDX)
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Article printed from InvestorPlace Media, https://investorplace.com/2013/01/trade-of-the-day-fedex-corp-nyse-fdx-2/.

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