Delivering An Economic Crystal Ball

Image by nvodicka from Pixabay

Many market watchers pay special attention to FedEx Corporation’s (FDX) results because the shipping company is seen as a barometer for the economy. (1) When things are good, more stuff is being shipped, and when things aren’t so good, less stuff is shipped.

The S&P 500 member is slated to release its third quarter financial results after the close of trading on Thursday, March 16, 2023. (2) Wall Street believes the delivery company will earn $2.72 per share (EPS), way down from last year’s profit of $4.59 per share.

Sales are also forecasted to slip, but not as much as EPS, with revenue dipping to expectation of $22.75 billion from 23.64 billion a year earlier. (3)

FDX’s stock price has traded within a box after spiking in late January/early February. Its prices has been restricted by $215 on the upside and $200 on the downside. Looking back at the three most recent quarters, FedEx stock moved down twice by about 2-3 percent and rose by close to 5 percent in the time it gained ground.

Considering its recent history, FDX’s results might not be enough to break the stock free of its current trading range. Investors might be wise to wait for FedEx Corporation (FDX) to get out of the box before taking a side. A close below $200 is likely to attract more selling and a close above $215 would likely bring more buyers into the stock.

At the very minimum, investors should listen closely to management’s guidance to have a sense on which way the economy may be headed.

Rich Meyers
Investing Trends


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