FedEx (NYSE:FDX) — This worldwide leader in domestic and international air and ground package delivery should benefit from any improvement in the global economy. But while S&P estimates the company could earn $4.57 in FY 2011, which is up from $3.76 in FY 2010, that’s a downgrade from early estimates. And yesterday, retail sales were reported to be less than expected, which may impact FDX.
Technically FDX has doubled-topped and fallen through its 50-day moving average (blue line), a negative indication. Selling has picked up, and the MACD issued a sell signal on Tuesday.
Earnings are expected this morning prior to the opening. Sell FDX short on rallies and also on a penetration of the November low at $76.08 with a downside target of $65.