FedEx (FDX) Down In Early Morning Trading

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.

Trade-Ideas LLC identified FedEx ( FDX) as a pre-market laggard 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 $305.5 million.
  • FDX traded 104,397 shares today in the pre-market hours as of 8:48 AM.
  • FDX is down 2.1% today from yesterday's close.

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More details on FDX:

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. The stock currently has a dividend yield of 0.5%. FDX has a PE ratio of 21. Currently there are 11 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 1.6 million shares per day over the past 30 days. FedEx has a market cap of $52.1 billion and is part of the services sector and transportation industry. The stock has a beta of 0.81 and a short float of 1.6% with 2.41 days to cover. Shares are up 5.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates FedEx 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, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • FDX's revenue growth has slightly outpaced the industry average of 0.5%. Since the same quarter one year prior, revenues slightly increased by 3.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.45, 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 1.73, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 63.41% and other important driving factors, this stock has surged by 29.58% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • FEDEX CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, FEDEX CORP increased its bottom line by earning $6.79 versus $4.92 in the prior year. This year, the market expects an improvement in earnings ($8.94 versus $6.79).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Air Freight & Logistics industry. The net income increased by 53.4% when compared to the same quarter one year prior, rising from $378.00 million to $580.00 million.

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