FedEx
Shares of FedEx Corp. (NYSE: FDX) posted a 52-week low after the company warned on earnings in September, despite a stated plan to slash $2.7 billion in costs that did not help much. Shares have recovered some of that loss, but the stock still trades nearly 28% over the past 12 months. Analysts will be looking at the company’s comments on volume for a hint about consumer spending this holiday season. Expectations are not promising, however. FedEx reports results after markets close Tuesday.
Analysts have adopted a wait-and-see position. Of 31 brokerages covering the stock, 18 have Hold ratings and the rest have a Buy or Strong Buy rating. At a share price of around $171.70, the upside potential based on a median price target of $190.00 is 10.7%. At the high price target of $295.00, the upside potential is 71.8%.
The consensus second-quarter revenue estimate is $23.72 billion, up by 2.1% sequentially and by 1.1% year over year. Adjusted EPS are forecast at $2.83, down 17.8% sequentially and 41.4% lower year over year. For the full 2023 fiscal year ending in May, analysts expect EPS of $14.20, down 31.1%, on sales of $94.57 billion, up 1.1%.
FedEx stock trades at 12.1 times expected 2023 EPS, 9.5 times estimated 2024 earnings of $18.00 and 7.8 times estimated 2025 earnings of $22.13 per share. The stock’s 52-week range is $141.92 to $266.79. FedEx pays an annual dividend of $4.60 (yield of 2.68%). Total shareholder return for the past year was a negative 26.5%.
FuelCell Energy
Hydrogen fuel cell maker FuelCell Energy Inc. (NASDAQ: FCEL) has seen its share price decline by about 44% over the past 12 months, reaching a new 52-week low in mid-October. Shares shot higher when the Inflation Reduction Act was passed in July, but the boost was temporary. FuelCell Energy reports quarterly results before markets open Tuesday morning.
Competitor Plug Power, despite a deal to supply hydrogen to Amazon, has had a larger decline than FuelCell. Another competitor, Bloom Energy, tracked the others until mid-May when it began to climb to an annual high before pulling back to trade roughly flat over the past year.
Of 11 analysts covering the stock, none has a Buy or Strong Buy rating on the shares, and two have a Sell or Strong Sell rating. Shares trade at around $3.50, above the median price target of $3.25. At the high price target of $5.00, the implied gain is 42.9%
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