Analysts are Downgrading These 5 Stocks

2. FedEx Corporation (NYSE:FDX)

Number of Hedge Fund Holders: 63

Shares of FedEx Corporation (NYSE:FDX) plunged to their lowest price in more than two years on Friday, September 16, 2022. The drop came after Stifel downgraded the package delivery giant from “Buy” to “Hold.”

Analyst J. Bruce Chan pointed towards the weak quarterly performance of FedEx Corporation (NYSE:FDX). Chan also decreased his price target for the stock from $288 per share to $195 per share.

The downgrade came a day after FedEx Corporation (NYSE:FDX) posted weak preliminary results for its fiscal first quarter. The company reported adjusted earnings of $3.44 per share, missing the consensus of $5.10 per share with a big margin. The quarterly revenue of $23.2 billion also came in below the expectations of $23.5 billion.

Moreover, FedEx Corporation (NYSE:FDX) also renounced its full-year guidance, citing a slowdown in demand. Discussing the results, CEO Raj Subramaniam said:

“Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S. We are swiftly addressing these headwinds, but given the speed at which conditions shifted, first quarter results are below our expectations.”