The delivery name reported better than expected profits and revenues
The shares of FedEx Corporation (NYSE: FDX) rose 6.5% to $ 281.12 this morning after the delivery company reported better-than-expected fiscal third-quarter earnings of $ 3.47 per share – more than Wall Street estimates of $ 3.23 per share – as well as an increase in sales. The company attributed the positive results to higher prices and higher volumes for pandemic deliveries. In return, the stock earned no less than four price target increases this morning, with the highest from BofA Global Research and Credit Suisse rising to $ 351. However, it also received a price cut from UBS to $ 383 from $ 386.
On the charts, FedEx stock has stepped back from its December 30th all-time high of $ 305.60. Today’s pop helped stocks break above the $ 275 level for the first time since mid-December. Longer-term, the stock is a whopping 152.4% year-over-year lead, with recent pullbacks being hurt by long-term 160-day moving average support.
Analysts are already optimistic about security, which makes today’s bull notes all the more impressive. Of the 19 in question, 14 named FDX a “buy” or better, while five said “hold”. Additionally, the 12-month consensus target of $ 328.42 represents a 16.3% premium over current levels.
The option pits are full of bullish activity today. So far, 26,000 calls have crossed the band, which is 15 times the average intraday amount and almost three times the number of puts traded. The most popular is the March 280 call, followed by the 300 call in the same monthly series, both of which expire at the end of the day.
Now seems like a good time to consider FDX’s next move with options in the midst of post-earn Volatility crush. The Schaeffer’s Volatility Index (SVI) of 41% is in the low 18th percentile of its annual range. This suggests that the stock sport bonuses are currently being offered at attractive prices.
What’s more, equity Schaeffer’s Volatility Scorecard (SVS) is at a high of 84 out of 100, indicating that FedEx stock has exceeded volatility expectations over the past year.