NEW YORK (TheStreet) -- When FedEx (FDX) reports quarterly earnings before the opening bell on Wednesday, it will likely report Monday's deliveries set record numbers as Internet shopping continues to take market share from brick-and-mortar store sales. In addition, lower fuel costs this holiday season should boost the bottom line for a stock that set an all-time intraday high at $183.51 on Dec. 8. Here's what investors should focus on.
Analysts expect FedEx to earn $2.18 per share, but on Monday there have been calls for an earnings beat following the shippers ability to beat expectations the last two quarters by solid margins. This report is a key to resuming a Santa Claus rally as FedEx shares should show stuffed sacks of toys and goodies.
FedEx deliveries dwarf those for the U.S. Postal Service, which expects to process 640 million pieces of mail on Monday, and 12.7 billion between Thanksgiving and Christmas. Guidance from FedEx calls for 22.6 million deliveries on Monday and 290 million for the holiday season, up 9% from a year ago.
Since FedEx is a momentum stock let's look at the daily and weekly charts, then present the investment profile with exit strategies.