by Sam Collins | January 16, 2013 1:58 am
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.
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