Shares of FedEx Corp (FDX) registered their largest single-session loss in 11 weeks on Wednesday, after the delivery company once again slashed its earnings forecast for the entire 2019.
FedEx Corp cited decelerating global trade growth as well as continued weakness in its international Express business, which encompasses former Dutch delivery firm TNT Express.
FedEx shares closed lower for a second consecutive trading session in New York on Wednesday. It has also been the steepest daily loss since January 3rd. The stock went down 3.49% ($6.34) to $175.07, after touching an intraday low at $169.80, or a price level not seen since March 8th ($167.61).
Shares of FedEx Corporation have risen 8.52% so far in 2019 compared with a 12.66% gain for the benchmark index, S&P 500 (SPX).
In 2018, FedEx Corp’s stock went down 35.35%, thus, it again underperformed the S&P 500, which registered a 6.24% loss.
The company said it now expected earnings within the range of $15.10 to $15.90 per share for the entire 2019. In comparison, analysts on average had expected full-year earnings of $15.97 per share.
As a result, a number of brokerages cut their 12-month price target on FedEx Corps stock.
J.P. Morgan downgraded the shares from “Overweight” to “Neutral” and slashed its price target from $227 to $202, as it projects “turbulence” in the near future.
“Mix pressures and labor cost inflation are mounting faster than anticipated at Ground… We are increasingly concerned operating margins in percent terms will be pressured even if Ground can lower costs fast enough to grow operating profit in dollars,” J.P. Morgan analyst Brian Ossenbeck wrote in a client note, cited by Reuters.
Meanwhile, Cowen and Company revised down its price target on the stock from $237 to $230 and said it expected Express margins to remain pressured during the upcoming six months before improving during the second half of 2020.
Morgan Stanley also cut its price target on FedEx Corp from $156 to $148.
According to CNN Money, the 23 analysts, offering 12-month forecasts regarding FedEx Corporation’s stock price, have a median target of $210.00, with a high estimate of $360.00 and a low estimate of $156.00. The median estimate represents a 19.95% upside compared to the closing price of $175.07 on March 20th.
The same media also reported that 19 out of 28 surveyed investment analysts had rated FedEx Corporation’s stock as “Buy”, while 4 – as “Hold”.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for FedEx Corporation (FDX) are presented as follows:
Central Pivot Point – $177.23
R1 – $182.59
R2 – $187.21
R3 – $192.57
R4 – $197.94
S1 – $172.61
S2 – $167.25
S3 – $162.63
S4 – $158.02