Options Trade – FedEx Corp. (FDX) Sunday, December 30, 2012

FedEx Could Deliver Big Gains!

**OPTION TRADE: Buy the FDX Jul 2013 105.000 call (FDX130720C00105000) at or under $1.50, good for the day. Place a protective stop limit at $0.70 and a pre-determined sell at $3.00.

by Ian Harvey

December 30, 2012


This company missed its fiscal Q2 earnings estimate by a penny due to Superstorm Sandy. But S&P maintains its fiscal year (FY) 2013 (ending in May) estimate of $6.50 and looks for $8.02 in FY 2014 with a 12-month target price of $122.

FedEx Corp. (NYSE:FDX) — provides transportation, e-commerce, and business services in the United States and internationally. It operates in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. The company was founded in 1971 and is headquartered in Memphis, Tennessee.

Key Statistics for FDX

Current P/E Ratio (ttm) 14.1677
Estimated P/E(05/2013) 14.1922
Relative P/E vs. SPX 0.9932
Earnings Per Share (USD) (ttm) 6.3800
Est. EPS (USD) (05/2013) 6.3690
Est. PEG Ratio 1.2740
Market Cap (M USD) 28,424.18
Shares Outstanding (M) 314.46
30 Day Average Volume 1,993,771
Price/Book (mrq) 1.8325
Price/Sale (ttm) 0.6555
Dividend Indicated Gross Yield 0.62%
Cash Dividend (USD) 0.1400
Last Dividend 11/19/2012
5 Year Dividend Growth 7.12%
Next Earnings Announcement 03/22/2013
mrq = Most Recent Quarter; ttm = Trailing Twelve Months


Next reporting dateMarch 20, 2013
EPS forecast (this quarter)$1.40
Annual revenue (last year)$42.7B
Annual profit (last year)$2.0B
Net profit margin4.76%

Growth & Valuation

Earnings growth (last year)+39.96%
Earnings growth (this year)-2.79%
Earnings growth (next 5 years)+11.40%
Revenue growth (last year)+8.59%
P/E ratio14.5

Analysts Recommendations

  current 1 Month Ago 3 Months Ago
BUY 18 19 19
HOLD 9 9 9
SELL 0 0 0
MEAN Overweight Overweight Overweight

Technical Reasons for FDX Progression

Technically, FDX has been consolidating in a saucer (rounding bottom) pattern for almost a year. Since October, upside volume has increased dramatically, and the stock executed a golden cross (long-term bullish signal) in November.

A break through the February closing high at $96.96 should result in an easy trade to $110. But the stock is volatile, so buy under the $92 price is important.

Therefore, based on the facts above the following options trade is recommended…..

**OPTION TRADE: Buy the FDX Jul 2013 105.000 call (FDX130720C00105000) at or under $1.50, good for the day. Place a protective stop limit at $0.70 and a pre-determined sell at $3.00.

”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.

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