The share prices for FedEx experienced a significant pump in the latest trading session. The shares for the company pumped more than 4% after the executives shared the earnings for the recent quarter
The company officials confirmed that the earnings they scored were stronger than the predictions made by the analysts.
Just a day back, the share price movement recorded for the delivery company was at a one-month low. Surprisingly, the company’s shares have moved higher in a matter of a day.
It is all thanks to the stronger earnings shared by the company officials for the latest quarter. Due to the strong earnings, the company’s shares have been pushed higher.
In a matter of a day, the company’s shares have been pushed up by 6.5%. The investors were glad for experiencing a strong rally that helped recover the dips they had witnessed in the last trading day.
Today, the situation is different for FedEx as the company’s shares are hovering in the stronger zone. The investor is pushing the share prices even higher with their buying sentiments.
Earnings Reported by FedEx
The company has revealed that the earnings they have generated are stronger than the expectations set by the analysts. However, the revenue they generated was lower than the estimations in the same quarter.
In the recent quarter, the company proceeded with cost-cutting tactics. As a result, they were able to generate stronger earnings in the same quarter.
As for the revenue, they recorded a 3% year-over-year decline, which was not a good sight. They even ended up missing the revenue target for the recent quarter.
It is quite surprising to see that the share prices of the delivery company have been pumped even when the company shared its full-year guidance.
The company even toned down its earnings guidance for the entire year due to the slow revenue generation.
In the running year, the share prices for the delivery company have dropped almost to a third of their trading value at the beginning of the year.
It was quite surprising to see that FedEx became the reason the share prices for United Parcel Service (UPS) also experienced a surge.
The rival of FedEx also experienced a 1.5% surge in share prices in the latest trading session.
Is the FedEx Rally Going to Continue?
The last time FedEx reported its earnings was back on September 16. Right after posting the earnings, the share prices for the delivery company plunged tremendously.
The company’s shares ended up losing 21% of their value in a single trading session, very alarming for the investors as well as the company.
However, the price being pulled by 21% was not the only downtrend as the company’s shares faced another downtrend in the next few days. That was the time the company’s shares suffered their bottom price of 2022.
Since then, the share prices for FedEx have started moving on the ascending channel but in a steady manner.
The uptrend has continued for quite a while and the company has managed to recover from the losses since September.
FedEx Shares to Surge to $184.39
According to the analysts, the first major obstacle for the delivery company’s share prices is the $175 mark. The bulls will need to build a stronger buying momentum and keep their confidence high to hit the level.
If they succeed in hitting the $175 mark, then there will be a chance for the bulls to push FedEx’s share prices higher.
As per the technical analysis, the major target for the bulls is $184.39. The bulls will need to cross multiple moving averages before they can come up to hitting and crossing the particular level.
If the bulls do manage to do it, then FedEx share prices will surge to a high of $184.39.