How COVID-19 Pandemic Created Fantastic Business Opportunities For FedEx Inc. (FDX)

FedEx Inc. (FDX) released a stronger-than-expected third-quarter report. Increased domestic and international demand remains the main drivers of FedEx services sales. As people advance to transfer to new places and global trade adjusts to eradicating COVID-19, these factors may continue this year.

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The GAAP revenue for the quarter ended Feb. 28 was $ 21.5 billion, and earnings were $ 892 million, or $ 3.3 per share, as compared to $ 17.5 billion, $ 315 million, and $ 1.2 in the year-earlier period. In February, abnormally cold temperatures and snowfall in the US resulted in a significant operating loss of about $ 350 million.

FedEx  Inc. (FDX)  had a good year in 2020, especially after a very bad year in 2019. As a result of the COVID-19 PandemicPandemic, most passenger flights have been suspended, resulting in a shortage of mail flights. At the same time, FedEx services have seen an increase due to a spike in e-commerce, which has created additional demand for the services. Another positive factor is integrating TNT Express with the logistics network, although not without various obstacles.

It is expected that FedEx will further improve margins through international express delivery and e-commerce shipping services.

As for FedEx’s expectations for earnings in 2021, the FedEx Inc. expects earnings of $ 17 – $ 18.2 per share. If FedEx manages to outperform earnings estimates, FDX stock prices could rise, despite the obvious positive momentum over the past year.

FDX stock traded at $266.81. The stock is currently 2.02% and 4.49% above its SMA20 and SMA50, respectively. Although FDX stock changes -2.63% yesterday and has a trading volume of 2.27 million, it is still 14.09% off its SMA200. For a year, FDX gained 138.73% compared to a 6-month gain of 11.76%. FedEx Inc. (FDX) has a 50-day simple moving average (SMA 50) of $255.79 and a 200-day simple moving average (SMA200) of $234.48.