How to Trade FedEx's 20% Surge Amid Drone Delivery & EV Testing

<a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-fedex-stock-forecast"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/Trade_FedEx.png" data- data- data-alt="Trade FedEx" data-height="330" data-width="720"><source type="image/webp" media="(min-width: 640px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/720x,webp/fxmedia.s3.amazonaws.com/articles/Trade_FedEx.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/375x,webp/fxmedia.s3.amazonaws.com/articles/Trade_FedEx.png"></source></picture></a>Logistics firm FedEx's share price soared more than 250% higher over the pandemic period. Since reaching a record high in June 2021, the stock has moved down nearly 40%. While the company posted strong earnings throughout 2020 and 2021, recent earnings took a hit due to higher fuel costs and labour shortages due to Covid. As you’ll see further down this article, hedge funds have also been increasing their positions in the company during the last quarter. Learn how to trade FedEx shares below. <table border="1">
<tbody>
<tr>
<td>Stock:</td>
<td>FedEx Corp</td>
</tr>
<tr>
<td>Exchange:</td>
<td>NYSE</td>
</tr>
<tr>
<td>Symbol for Invest.MT5 Account:</td>
<td><a href="https://admiralmarkets.com/start-trading/contract-specifications/instrument/fdx" target="_blank" rel="noreferrer noopener">FDX</a> </td>
</tr>
<tr>
<td>Date of Idea:</td>
<td>7 April 2022</td>
</tr>
<tr>
<td>Time Line:</td>
<td>1 – 6 months</td>
</tr>
<tr>
<td>Entry Level:</td>
<td>$242.00</td>
</tr>
<tr>
<td>Target Level:</td>
<td>$295.00</td>
</tr>
<tr>
<td>Position Size for Invest.MT5 Account:</td>
<td>Max 5%</td>
</tr>
<tr>
<td>Risk:</td>
<td>High</td>
</tr>
</tbody>
</table><ul>
<li>The <a href="https://admiralmarkets.com/start-trading/admiral-invest-stocks-and-etfs" target="_blank" rel="noopener">Invest.MT5</a> account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.</li>
</ul><div>
<div data-symbol="FDX" data-interval="D"></div>
<div>Source: <a rel="noopener" href="https://www.tradingview.com/" target="_blank">TradingView</a></div>
</div>All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a <a href="https://admiralmarkets.com/start-trading/forex-demo" target="_blank" rel="noopener">demo account</a> first to build your knowledge before investing. <a href="https://admiralmarkets.com/start-trading/contract-specifications/instrument/fdx" target="_blank" rel="noopener"><a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-fedex-stock-forecast"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/Trade_FedEx_shares.png" data- data- data-alt="Trade FedEx shares" data-height="220" data-width="720"><source type="image/webp" media="(min-width: 640px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/720x,webp/fxmedia.s3.amazonaws.com/articles/Trade_FedEx_shares.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/375x,webp/fxmedia.s3.amazonaws.com/articles/Trade_FedEx_shares.png"></source></picture></a></a><h2 aria-level="1">Why Trade FedEx Stock? </h2>FedEx is an American multinational logistics firm best known for its air delivery service which was one of the first major shipping companies to provide overnight deliveries. The company is one of the top contractors of the US government and has subsidiaries providing a variety of other services in transportation and e-commerce. Last month, the company posted a lower-than-expected quarterly earnings report as the company was affected by labour issues and the Omicron outbreak. On top of this, FedEx founder Fred Smith announced he is stepping down as chief executive after 50 years at the helm. But, this hasn’t stopped analysts to look at the long-term prospects of FedEx and issuing buy ratings on the stock in the past month. Furthermore, in the last quarter alone hedge funds built bigger positions in FedEx by <a rel="nofollow noopener" href="https://www.tipranks.com/stocks/fdx/hedge-funds" target="_blank">purchasing</a> more than 3.4 million shares. <h3 aria-level="3">Global macro trends in shopping are likely to underpin demand for FedEx’s services </h3>As we move into a more globalised society, global macro trends in shopping and e-commerce are likely to keep FedEx’s services in demand. As more and more people purchase goods online from around the world, operators who provide fast, worldwide shipping are likely to benefit. Of course, FedEx is not the only player in the market with rivals UPS also a big name in the sector. However, in the latest <a rel="nofollow noopener" href="https://www.reuters.com/business/fedex-profit-rises-e-commerce-boost-2022-03-17/" target="_blank">earnings</a> call new chief executive Raj Subramaniam stated they are “laser-focused on improving margins.” The energy a new chief executive brings can help to revive underperforming divisions and help lift the stock price in time, especially as the focus is to generate 8.3% compound annual growth in its e-commerce market. <h3 aria-level="3">FedEx is due to start testing autonomous drone cargo delivery and EV trucks </h3>FedEx and its rivals have long been trying to innovate its services to provide better profits and margin. FedEx has <a rel="nofollow noopener" href="https://www.foxbusiness.com/technology/fedex-drone-delivery-testing-2023" target="_blank">partnered</a> with Elroy Air’s Chaparral autonomous, electric vertical take-off and landing (VOTL) drone. Testing is due to start in 2023 with shipments being moved between FedEx sorting locations to begin with. The drones are able to autonomously pick up 300 to 500 pounds of cargo and drop it to destinations up to 300 miles away. FedEx has also partnered with Neolix, a self-driving logistics company based in China to capitalise on the trend towards autonomous truck deliveries. <h3>Hedge funds have actively increased their positions in FedEx </h3>According to <a rel="nofollow noopener" href="https://www.tipranks.com/stocks/fdx/hedge-funds" target="_blank">TipRanks</a>, the latest 13F filing report of 203 hedge funds submitted to the Securities and Exchange Commission (SEC) shows that hedge funds increased their holdings in FedEx by 3.4 million shares in the last quarter. While many hedge funds are adding to their current exposure, there are also many new hedge funds purchasing new shares. This highlights a more optimistic tone in the long-term prospects for FedEx’s share price. <a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-fedex-stock-forecast"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/fedex_hedge_fund_holdings.PNG" data- data- data-alt="fedex hedge fund holdings" data-height="543" data-width="758"><source type="image/webp" media="(min-width: 640px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/720x,webp/fxmedia.s3.amazonaws.com/articles/fedex_hedge_fund_holdings.PNG"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/375x,webp/fxmedia.s3.amazonaws.com/articles/fedex_hedge_fund_holdings.PNG"></source></picture></a>Source: <a rel="noreferrer noopener" href="https://www.tipranks.com/stocks/fdx/hedge-funds" target="_blank">TipRanks</a>, 6 April 2022 <h2 aria-level="2">FedEx Stock Forecast - What do the Analysts Say? </h2>According to analysts polled by <a rel="nofollow noopener" href="https://www.tipranks.com/stocks/fdx/forecast" target="_blank">TipRanks</a> for a FedEx stock forecast in the last 3 months, there are currently 18 buy, 3 hold and 0 sell ratings on the stock. The highest price level for a FedEx stock forecast is $343.00 with the lowest price target at $250.00. The average price target for a FedEx stock forecast is $295.75 which represents near 38% upside from current levels, at the time of writing. Analysts at UBS and Barclays provided buy ratings on the stock only 18 days ago with price targets at $310.00 and $320.00 respectively. <a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-fedex-stock-forecast"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/FedEx_analyst_rating.PNG" data- data- data-alt="FedEx analyst rating" data-height="449" data-width="1240"><source type="image/webp" media="(min-width: 640px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/720x,webp/fxmedia.s3.amazonaws.com/articles/FedEx_analyst_rating.PNG"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/375x,webp/fxmedia.s3.amazonaws.com/articles/FedEx_analyst_rating.PNG"></source></picture></a>Source: <a rel="noreferrer noopener" href="https://www.tipranks.com/stocks/fdx/forecast" target="_blank">TipRanks,</a> 6 April 2022 <h2 aria-level="2">An Example Trading Idea for the FedEx Stock Price</h2>An example trading idea for the FedEx stock forecast could be as follows: <ul>
<li data-leveltext="%1." data-font="Calibri" data-list aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Buy the stock on a break above $242.00 to allow for current volatility. </li>
<li data-leveltext="%1." data-font="Calibri" data-list aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Target just below the average analyst price target at $295.00. </li>
<li data-leveltext="%1." data-font="Calibri" data-list aria-setsize="-1" data-aria-posinset="3" data-aria-level="1">Keep your risk small at a maximum of 5% of your total account. </li>
<li data-leveltext="%1." data-font="Calibri" data-list aria-setsize="-1" data-aria-posinset="4" data-aria-level="1">Time Line = 1 – 6 months </li>
<li data-leveltext="%1." data-font="Calibri" data-list aria-setsize="-1" data-aria-posinset="5" data-aria-level="1">If you buy 10 FedEx shares:
<ul>
<li data-leveltext="%2." data-font="Calibri" data-list aria-setsize="-1" data-aria-posinset="1" data-aria-level="2">If target is reached = $530.00 potential profit ($295.00 – $242.00 *10 shares). </li>
</ul>
</li>
</ul>It’s wise to remember that the share price is unlikely to go up in a straight line and it may even go much further down before it rises, especially considering the recent sell-off in global stock markets. Therefore, be sure to exercise good risk management which is one of the most important aspects of trading successfully. You should always know how much you could potentially lose on a trade and the risks involved. Another factor to consider is the commission as these can eat into your profits. With the Admirals <a href="https://admiralmarkets.com/start-trading/admiral-invest-stocks-and-etfs" target="_blank" rel="noopener">Invest.MT5</a> account you can buy US stocks from $0.02 per share. This means buying 10 shares in FedEx stock would result in a commission of $0.20 ($0.02 * 10 shares). There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall! <h2 aria-level="2">How to Buy FedEx Stock in 4 Steps </h2>With Admirals, you can buy shares in US companies like FedEx with a low commission of just $0.02 per share and a low minimum commission of just $1. <ol>
<li data-leveltext="%1." data-font="ＭＳ明朝" data-list aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"><a href="https://admiralmarkets.com/signup" target="_blank" rel="noopener">Open an account</a> with Admirals to access the Trader’s Room. </li>
<li data-leveltext="%1." data-font="ＭＳ明朝" data-list aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Click on Trade on one of your live or demo accounts to open the web platform. </li>
<li data-leveltext="%1." data-font="ＭＳ明朝" data-list aria-setsize="-1" data-aria-posinset="3" data-aria-level="1">Search for FedEx at the bottom of the Market Watch window and drag the symbol onto the chart. </li>
<li data-leveltext="%1." data-font="ＭＳ明朝" data-list aria-setsize="-1" data-aria-posinset="4" data-aria-level="1">Use the one-click trading feature, or right-click and open a trading ticket to input your trade size, stop loss and take profit level. </li>
</ol><a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-fedex-stock-forecast"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/fedex_shares_trading_ticket.PNG" data- data- data-alt="fedex shares trading ticket" data-height="828" data-width="1693"><source type="image/webp" media="(min-width: 640px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/720x,webp/fxmedia.s3.amazonaws.com/articles/fedex_shares_trading_ticket.PNG"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/375x,webp/fxmedia.s3.amazonaws.com/articles/fedex_shares_trading_ticket.PNG"></source></picture></a>Source: <a href="https://admiralmarkets.com/trading-platforms/webtrader" target="_blank" rel="noopener">Admirals MetaTrader 5 Web</a>. Past performance is not a reliable indicator of future results, or future performance. Click on the banner below to buy FedEx stock today! ▼▼▼ <a href="https://admiralmarkets.com/start-trading/contract-specifications/instrument/fdx"><a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-fedex-stock-forecast"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/Trade_FedEx_shares-1.png" data- data- data-alt="Trade FedEx shares" data-height="220" data-width="720"><source type="image/webp" media="(min-width: 640px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/720x,webp/fxmedia.s3.amazonaws.com/articles/Trade_FedEx_shares-1.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/375x,webp/fxmedia.s3.amazonaws.com/articles/Trade_FedEx_shares-1.png"></source></picture></a></a><h2 aria-level="2">Do You See the FedEx Stock Price Moving Differently? </h2>Remember that all analytics and trading ideas are based on the personal view and experience of the author. If you believe there is a higher chance FedEx's share price will move lower, then you can also trade <a href="https://admiralmarkets.com/education/articles/general-trading/short-selling" target="_blank" rel="noopener">short </a>from a CFD (Contracts for Difference) trading account which Admirals also provide. The <a href="https://admiralmarkets.com/start-trading/account-types" target="_blank" rel="noopener">Trade.MT5</a> and <a href="https://admiralmarkets.com/start-trading/account-types" target="_blank" rel="noopener">Trade.MT4</a> account allows you to speculate on the price direction of stocks and shares using CFDs. This means you can trade long and short to potentially profit from rising and falling stock prices. Learn more about CFDs in this <a href="https://admiralmarkets.com/education/articles/forex-basics/what-is-cfd-trading-contracts-for-difference-explained" target="_blank" rel="noopener">How to Trade CFDs</a> article. INFORMATION ABOUT ANALYTICAL MATERIALS: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals’ investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following: <ul>
<li data-leveltext="" data-font="Symbol" data-list aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research. </li>
<li data-leveltext="" data-font="Symbol" data-list aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content. </li>
<li data-leveltext="" data-font="Symbol" data-list aria-setsize="-1" data-aria-posinset="3" data-aria-level="1">With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest. </li>
<li data-leveltext="" data-font="Symbol" data-list aria-setsize="-1" data-aria-posinset="4" data-aria-level="1">The Analysis is prepared by an independent analyst, Jitanchandra Solanki (analyst), (hereinafter “Author”) based on their personal estimations. </li>
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How to Trade FedEx's 20% Surge Amid Drone Delivery & EV Testing

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