FedEx for years has played second fiddle to archrival UPS in terms of sales, but the gap is shrinking. In fact, they're nearly neck-and-neck for revenue. On Wednesday, the Relative Strength (RS) Rating for FedEx stock climbed to 71, up from 68 a day earlier. FedEx stock rose.
The new 71 RS Rating means Memphis-based FedEx's stock topped 71% of stocks for price performance the past year. Market research shows that the best-performing stocks tend to have an 80 or better RS Rating as they launch their biggest runs. FedEx is closing on that milestone.
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FedEx Stock Among Top 17% Overall
Additionally, FedEx carries an 87 EPS Rating, of a best-possible 99. And FedEx stock has an 83 Composite Rating, putting it in the top 17% of stocks on a group of five key metrics. It has a B SMR Rating (Sales+profit Margins+Return on equity) on an A to E scale with A tops. Finally, it has a C Accumulation/Distribution Rating, meaning funds are buying about as many shares as selling.
FedEx stock dropped to a 192.82 bear market low on May 2 then started climbing. Wednesday the package delivery service rose about 0.3% to 226. It's just below its converged 50-day and 200-day lines. While FedEx is not near a proper buy point right now, see if it goes on to form and break out from a proper chart pattern such as a cup or cup-with-handle base.
Regarding fundamentals, FedEx's revenue growth rate fell last quarter from 10% the prior quarter to 8%, or $24.4 billion. By way of contrast, UPS reported $24.8 billion revenue in its most recent quarter. However, FedEx earnings grew 37% to $6.87 per share last quarter. The quarter before that, its EPS jumped 32% year over year. UPS last quarter reported $3.29 EPS, up 8% YoY.
FedEx stock holds the No. 4 rank among its peers in the Transportation-Air Freight industry group based on RS Rating. It's behind No. 3 United Parcel Service. Atlas Air Worldwide is No. 1 and Air Transport Services is No. 2 in the group. Air T rounds out the top five.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This exclusive rating from Investor's Business Daily measures market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the last 52 weeks holds up against all the other stocks in our database.
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