FedEx (FDX) fell sharply on Wednesday after the company posted earnings that missed Wall Street expectations.
Based on its market cycles, we believe the stock has more downside risks in the coming months.
The company reported earnings per share of $3.05 and total revenue of $17.05 billion, compared to analyst estimates of $3.17 and $17.09 billion. Management also lowered its guidance for the 2020 fiscal year.
CEO Fred Smith explained that, “Our performance continues to be negatively impacted by a weakening global macro environment driven by increasing trade tensions and policy uncertainty.”
Our approach to stock analysis uses market cycles to project price action.
The stock is now in the declining phase of its current cycle and has likely broken the low from which it started the cycle. That is bearish! Our target is now $120 by November.
FedEx (FDX) Stock Weekly Chart
For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.
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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
