FedEx Falls 15% After Earnings Miss, Bearish Signals Raise Red Flags For Investors

Core Viewpoint - FedEx Corp has experienced a significant decline in stock value following disappointing quarterly results, raising concerns among investors about the company's growth trajectory and future performance [1][2]. Group 1: Financial Performance - FedEx reported first-quarter revenue and earnings that fell short of analyst expectations, attributing the poor performance to decreased U.S. domestic priority package volumes and rising wage and transportation costs [2]. - The company has revised its full-year guidance downward, now projecting revenue growth in the low single-digit range for fiscal year 2025 [2]. - Investors have seen only a 1.56% gain over the past year and less than 1% year-to-date, indicating a lack of significant growth [1]. Group 2: Analyst Ratings and Price Targets - Morgan Stanley downgraded FedEx from Equal-Weight to Underweight, reducing the price target from $215 to $200 [2]. - Baird maintained its Outperform rating but lowered its target from $340 to $320, reflecting some optimism despite current challenges [2]. Group 3: Technical Indicators - FedEx's stock is currently trading below its 5, 20, and 50-day exponential moving averages, indicating a strong bearish trend [3]. - The current share price of $254.36 places the stock firmly in bear territory, with the 200-day SMA above it at $267.43, reinforcing long-term bearish momentum [3]. - The MACD indicator stands at a negative 1.77, signaling bearishness, while the RSI of 26.67 indicates oversold conditions, suggesting potential difficulty for a rebound in the short-to-medium term [3].