FedEx has appreciated more than 90% in 2020. Will it hit a ceiling soon?
FedEx is one of those companies, like Zoom, that has been able to benefit from the crisis caused by the Covid-19 pandemic. The parcel company has just presented its results for the second quarter of its fiscal year and has beaten analysts' forecasts by billing more than $20 billion for the first time.
Shares of FedEx, the world's largest transportation company, have appreciated more than 93% above $292 so far this year, driven by the boom in online shopping during lockdowns. This bullish rally was most pronounced after the initial crash in financial markets, when the coronavirus pandemic broke out. At that time, the stock fell to $90 and, from there, began a vertical rise that continues today.
However, after knowing the results, shares fell almost 3% in the pre-opening of the market. The company hasn’t established clear forecasts for the current quarter due to uncertainty, but expects growth to continue in 2021.
Source: Admiral Markets MetaTrader 5. Daily FedEx CFD chart. Data range: from October 25, 2018, to December 18, 2020. Prepared on December 18, 2020, at 1:00 p.m. Keep in mind that past returns do not guarantee future returns.
FedEx closed both the 2019 and 2018 fiscal years negatively after appreciating 34% and 25% in 2017 and 2016, respectively.
Do you think FedEx will maintain this trend in the short term or do you think it will peak soon? With Admiral Markets UK Ltd you can speculate on the price movement of this company's shares both up and down through Contracts for Difference, or CFDs. If you want to start, you already have two options: open a free demo account with virtual money or open a real trading account by clicking on the following banner:
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