AP - FedEx Corp. reported a 2 percent drop in third-quarter earnings Wednesday, blaming the decline largely on an economic slowdown that tested the company's ability to quickly adjust costs. The shipping company said it also will have to struggle to keep up with a long-range goal of 10 percent to 15 percent growth a year in per share earnings.
However, it even went up 2.08 points last Friday, ending at 112.71, or 1.88% higher than the previous day. Its volume is still high at 2,005,348
Looking at the divergence indicators, and considering the slowdown, we may consider selling short for FedEx.
I believe that the 2 pct. slowdown does not affect much of the investors' sentiment about Fedex at the moment. But, better be wary. With P/E at 17.79, the stock is a little undervalued compared with the rest. But this has to give if the profits continue to dip.
Sell FedEx.
No comments:
Post a Comment