Trade-Ideas LLC identified

FedEx

(

FDX

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified FedEx as such a stock due to the following factors:

  • FDX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $347.6 million.
  • FDX has traded 271,930 shares today.
  • FDX is trading at 2.47 times the normal volume for the stock at this time of day.
  • FDX is trading at a new high 3.12% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on FDX:

TheStreet Recommends

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. The stock currently has a dividend yield of 0.8%. FDX has a PE ratio of 32. Currently there are 8 analysts that rate FedEx a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for FedEx has been 2.1 million shares per day over the past 30 days. FedEx has a market cap of $34.7 billion and is part of the services sector and transportation industry. The stock has a beta of 1.22 and a short float of 1.7% with 1.65 days to cover. Shares are down 14.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates FedEx as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • FDX's revenue growth has slightly outpaced the industry average of 1.7%. Since the same quarter one year prior, revenues slightly increased by 4.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.57, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, FDX has a quick ratio of 1.60, which demonstrates the ability of the company to cover short-term liquidity needs.
  • FEDEX CORP has improved earnings per share by 5.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FEDEX CORP reported lower earnings of $3.60 versus $6.79 in the prior year. This year, the market expects an improvement in earnings ($10.56 versus $3.60).
  • FDX's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 30.85%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Air Freight & Logistics industry and the overall market, FEDEX CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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