FedEx Trade Illustrates Discipline: Quick Entry and Exit
🔄 FedEx presented a buy signal on Thursday as it moved above its 21-day moving average, prompting an entry into the stock.
📉 However, the stock reversed the next day (Friday), falling back below the 21-day moving average, triggering an immediate sell signal based on the pre-defined strategy.
🛡️ This trade exemplifies the importance of strict discipline in trading: adhering to entry and exit rules (like moving averages) even if it results in a small loss, to prevent larger drawdowns.
FedEx Spinoff: Unlocking Value or Signaling Economic Concerns?
📦 FedEx is planning a spinoff of its LTL (Less Than Truckload) vertical, expected in June 2026.
📈 The announcement of the spinoff caused a 10% surge in the stock price, despite initially poor quarterly results.
⚠️ Transportation companies like FedEx are often seen as barometers of the economy, with declines preceding recessions.
FedEx Cuts Forecasts: Inflation and Demand Uncertainty Cloud Outlook
📉 FedEx reduces its fiscal year profit forecast for the third consecutive quarter, with adjusted earnings now expected between $18 and $18.6 per share, below analyst estimates of nearly $19.
⚠️ The company warns that revenues might be slightly lower than the previous year, a shift from earlier projections of unchanged sales, due to ongoing inflation and demand uncertainty.
💸 Higher-than-expected inflation is pressuring costs, as stated by CEO Rash Supra during the earnings call, impacting the company's financial performance.
FedEx Stumbles: Disappointing Guidance and a Potential Special Situation
📉 FedEx's stock is down, with guidance that is not at all positive, raising concerns about its short-term performance.
⏳ The company announced a spin-off, but it is believed that it may happen in a year, creating a potential special investment situation.
⚠️ Technically speaking, FedEx has strong support at $238, but its cyclical nature and role as an economic thermometer warrant caution.
FedEx: Earnings on the Horizon
📅 FedEx will present its quarterly results today, after the market closes.
👀 The company joins Nike and Micron as one of the most anticipated reports of the day.
🤔 The expectation is high, as these results could offer clues about the state of the global economy.
