FedEx Corporation (FDX) in the Stop Trading List

FedEx Corporation (NYSE:FDX) is currently sold at about $154 per share and its close to an all-time high if it continues in the same manner for even a short period. However, there are serious concerns regarding the future prices of its stock, according to Jim Cramer on CNBC.

FedEx Corporation (NYSE:FDX)

FedEx Corporation (NYSE:FDX)’s price has taken an upwards trend due to a massive drop in crude oil prices, which are expected to go even lower in the near future. Bullish investors see this as a possibility for the company to boost its value even further and it’s a currently cheap stock due to several reasons. It has a price-to-book at around 2.7, a price-to-sales of approximately 0.9 and its enterprise value, amounting slightly above $45 billion, is more than the market capitalization, which is about $43.76 billion. But, for many, these numbers are not enough.

“Citi raises numbers on FedEx, it being a great promoter of worldwide trade. The transports are driving this market, some of it’s gasoline, but they take numbers to $2.01, that’s up from $1.91. Watch that stock, it’s a great promoter of what’s going on underneath this market,” said Jim Cramer.

Bearish beliefs towards FedEx Corporation (FDX) express disbeliefs that the narrow profit margins currently held by the company will allow it to overcome a spike in oil prices. They also draw attention to the fact that FedEx Corporation (FDX)’s price to earnings ratio is 22.71, but growth projections are around the mid-single-digits, which doesn’t loot that promising. Moreover, the company is facing accusations of shipping drugs, which might inflict wounds in the budget, if the fine of over $1.5 billion dollars is applied to the case.

If FedEx Corporation (NYSE:FDX) manages to push prices even higher, taking advantage of the current market growth, we’ll be witnessing a race towards the top in a counter-trend style. The situation might prove particularly unstable if prices will revert to the expected trend, that is, they willl eventually plummet to a more stable level, at about $140 – $145 per share. As a conclusion risk lovers are asked to be careful with this stock.

 

Disclosure: none

 

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!