2024-04-23 17:52:35 ET
Summary
- Transportation stocks have been losing steam, but FedEx has bucked the trend and is a compelling buy following a strong Q3 report in March.
- FedEx is focused on reducing its costs and has impressive EPS growth forecasts from the sell-side.
- I see the transport stock as a buy on valuation while its technical situation has improved.
- I outline key price levels to monitor ahead of earnings due out in June.
Transportation stocks had been keeping pace with the strong S&P 500 through February this year. Market-watchers like to see this cyclical niche of the domestic equity market lead during bull markets to help confirm the uptrend. The iShares Transportation Average ETF ( IYT ) began to lose absolute and relative steam toward the tail end of Q1, however. It indeed portended a small correction in the S&P 500. One of the ETF’s largest components, however, bucked the trend....
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FedEx: Cost Cuts Paying Off, Big EPS Growth Expected