10 Jun

FedEx Trading Near 52-Week Low on Multiple Headwinds

WRITTEN BY Anirudha Bhagat

Dismal stock performance

FedEx (FDX) stock closed at $158.02 on June 7, marking a 38% fall in the last year. The stock hit a 52-week high of $266.67 on June 12, 2018, and touched a 52-week low of $150.68 on June 3, 2019.

FedEx Trading Near 52-Week Low on Multiple Headwinds

FedEx stock has fallen significantly more than the iShares Transportation Average ETF (IYT), which has fallen 6.5% in the last year. The air freight and courier industry comprises ~21% of the fund. On the contrary, the Dow Jones, NASDAQ, and S&P 500 have gained 2.9%, 1.4%, and 3.7%, respectively. FedEx peers United Parcel Service (UPS), Saia (SAIA), and C.H. Robinson Worldwide (CHRW) have fallen 15.5%, 29.3%, and 9.4%.

Multiple headwinds

FedEx’s lackluster results in two of the last three quarters and low fiscal 2019 EPS guidance are the primary reasons behind the stock’s dismal performance. US-China trade tensions have also kept US markets volatile over the last year, pushing them mostly downward and hurting FedEx.

With the release of its second- and third-quarter fiscal 2019 results, FedEx stated that the ongoing trade spat between the world’s two largest economies has affected its business in China. Furthermore, delays in TNT Express’s integration and higher facility upgrade investments, salaries, and bonuses are hurting its bottom line, and the sudden departure of key executives David Bronczek and David Cunningham has worried investors. FedEx stock also received a blow this month after Chinese government officials announced they were investigating the company for allegedly rerouting some of Huawei Technologies’ parcels.

Latest articles

German chip maker Infineon Technologies has reportedly raised 1.55 billion euros (~$1.74 billion) in capital by selling its shares to fund its acquisition of Cypress Semiconductor (CY). Infineon has sold ~113 million new shares at 13.70 euros each.

As of June 18, Dunkin’ Brands (DNKN) was trading at $80.07, an 8.9% rise since reporting its first-quarter earnings on May 2. Also, DNKN was trading at a premium of 29.8% from its 52-week low of $61.69 and a discount of 1.6% from its 52-week high of $81.40.

19 Jun

Are Lower Oil Prices Weighing on ExxonMobil Stock?

WRITTEN BY Maitali Ramkumar

ExxonMobil (XOM) stock has fallen 7.1% in the second quarter so far. Let's review ExxonMobil's stock performance in comparison to oil price changes and equity market movements in the quarter.

19 Jun

As Facebook Unveils Libra, MSFT and CRM Join a Blockchain Group

WRITTEN BY Mayur Sontakke, CFA, FRM

On June 18, Facebook (FB) launched Libra, its own cryptocurrency. On the same day, CoinDesk published another piece of blockchain news that didn’t receive as much fanfare as Facebook’s Libra news. Was the timing a coincidence? We think not.

Uber Technologies (UBER) has picked Melbourne as another test site for its flying taxi service known as UberAir. The Australian city is the first international test site Uber has chosen for its flying taxi service. The addition of Melbourne brings the number of test locations Uber has picked for its UberAir service to three.

Lyft (LYFT) and Uber Technologies (UBER) are pushing back against California legislation that would require them to recognize their drivers as employees rather than independent contractors. The legislation would require companies like Lyft to give their drivers the compensation and benefits spelled out under California’s employment regulations.

172.31.59.107