Delivery service FedEx continues to perform at a high level amid deliveries of Covid vaccines to hospitals and packages to homebound workers. On Monday, FedEx‘s (FDX) stock Relative Strength (RS) Rating jumped to 73, up from 66 the day before. The move came after the company reported a third quarter earnings beat on Thursday.
The 73 Relative Strength Rating means that FedEx has outperformed 73% of all stocks over the past year. Stocks that go on to make the biggest gains typically have an 80 or better RS Rating in the early stages of their moves. See if FedEx can continue to rebound and hit that benchmark.
Other FedEx Ratings Also Upbeat
However, other ratings show also show strength. Its EPS Rating of 86, out of a best-possible 99, results from double- and triple-digit profit gains the past three quarters.
Additionally, FedEx has an 88 Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics. The best growth stocks have a CR of 90 or better.
And the Memphis-based company carries a B Accumulation/Distribution Rating on an A+ to E scale. That points to moderately strong buying by institutional investors.
In terms of fundamentals, the company has posted four quarters of accelerating earnings growth. Last quarter, its EPS surged 146% to $3.47. The prior two periods its EPS rose 60% and then 92%.
Sales gains have also risen over the same time frame. Its Q3 sales rose 23% to $21.5 billion. The company’s results showed solid core execution “with Ground’s margin improvement a key highlight,” Baird analyst Garrett Holland said.
The prior two quarters its sales grew 13% and then 19%. FedEx shares were down 1% to 276.56 Monday afternoon.
The company holds the No. 1 rank among its peers in the Transportation-Air Freight industry group. Atlas Air (AAWW), Air Transport Services (ATSG) and United Parcel Service (UPS) are also among the top-five in the group.
FedEx is building a cup-without-handle pattern with a 305.76 entry. See if it can break out in volume at least 40% above average.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD’s proprietary rating measures market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock’s price behavior over the last 52 weeks compares to all the other stocks in our database.
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