Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified FedEx Corporation ( FDX) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified FedEx Corporation as such a stock due to the following factors:
- FDX has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 6.43 mentions/day.
- FDX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $280.2 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend. EXCLUSIVE OFFER: Get the inside scoop on opportunities in FDX with the Ticky from Trade-Ideas. See the FREE profile for FDX NOW at Trade-Ideas More details on FDX: FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. The stock currently has a dividend yield of 0.4%. FDX has a PE ratio of 26.6. Currently there are 11 analysts that rate FedEx Corporation a buy, 1 analyst rates it a sell, and 7 rate it a hold. The average volume for FedEx Corporation has been 2.1 million shares per day over the past 30 days. FedEx has a market cap of $43.0 billion and is part of the services sector and transportation industry. The stock has a beta of 1.25 and a short float of 3% with 4.37 days to cover. Shares are down 3.6% year-to-date as of the close of trading on Tuesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates FedEx Corporation as a buy. 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, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 4.7%. Since the same quarter one year prior, revenues slightly increased by 2.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- FDX's debt-to-equity ratio is very low at 0.17 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, FDX has a quick ratio of 1.72, which demonstrates the ability of the company to cover short-term liquidity needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 26.70% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- FEDEX CORP has improved earnings per share by 12.9% 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 $4.92 versus $6.41 in the prior year. This year, the market expects an improvement in earnings ($6.94 versus $4.92).
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Air Freight & Logistics industry average. The net income increased by 14.2% when compared to the same quarter one year prior, going from $438.00 million to $500.00 million.
- You can view the full FedEx Corporation Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.