Fedex (FDX) announced earnings results for the last quarter this morning, and the company missed their delivery. For the quarter, they missed their earnings per share target by 0.20 after reporting results of $3.99 per.
The miss was driven by a 13% decline in shipping volume.
Its important to remember that it appears that we may have seen a bottom in consumer sentiment and demand over the last two quarters. Fedex reaffirmed their 2024 revenue and profitability goals, meaning that today’s 10-15% drop in price may be a perfect “Buy the Dip” opportunity.
Winnebago (WGO) shares are also trading by more than 10% this morning as the RV company fell short of their earnings expectations. We’ve been talking about how companies like this should see pressure from high interest rates, and that’s exactly what happened as the company delivered fewer units and used some deep discounts and giveaways to keep things moving.
WGO’s shares price has been going through the roof as traders have been betting that the company will return to big numbers in 2024 because of lower interest rates. That means the stock was priced for perfection ahead of the report.
I’ve had WGO on my bearish list for more than a year, the company’s outlook and the crowd’s appetite for the stock leads me to believe that today’s test of the $250 level is a short-term opportunity for aggressive traders.
Alphabet (GOOG)… Get this, Raymond James reinitiated coverage on shares of Alphabet this morning. That’s right, the company’s analysts have not had a rating on the shares for some time, but this morning re-initiated their coverage with an “Outperform” rating – or what I call “Strong Buy.”
The “upgrade” to the stock combines with news that the company is reorganizing their sales unit as they head into 2024.
The double-dip of good news has GOOG shares trading 1.5% higher in premarket activity while the rest of the market looks like it will be getting off to a soft start.
Shares of GOOG are now likely to break above the $140 level that has been stubbornly acting as a top since the company’s earnings on October 24. Watch for a short bull run on shares into the new year.
About the Author
Chris Johnson is a highly regarded equity and options analyst who has spent much of his nearly 30-year market career designing and interpreting complex models to help investment firms transform millions of data points into impressive gains for clients.
At heart Chris is a quant – like the “rocket scientists” of investing – with a specialty in applying advanced mathematics like stochastic calculus, linear algebra, differential equations, and statistics to Wall Street’s data-rich environment.
He began building his proprietary models in 1998, analyzing about 2,000 records per day. Today, that database, which Chris designed and coded from scratch, analyzes a staggering 700,000 records per day. It’s the secret behind his track record.
Chris holds degrees in finance, statistics, and accounting. He worked as a licensed broker for 11 years before taking on the role of Director of Quantitative Analysis at a big-name equity and options research firm for eight years. He recently served as Director of Research of a Cleveland-based investment firm responsible for hundreds of millions in AUM. He is also the Founder/CIO of ETF Advisory Research Partners since 2007, noted for its groundbreaking work in Behavioral Valuation systems. Their research is widely read by leaders in the RIA business.
Chris is ranked in the top 99.3% of financial bloggers and top 98.6% of overall experts by TipRanks, the track record registry of financial analysts dating back to January 2009.
He is a frequent commentator on financial markets for CNBC, Fox, Bloomberg TV, and CBS Radio and has been featured in Barron’s, USA Today, Newsweek, and The Wall Street Journal, and numerous books.
Today, Chris is the editor of Night Trader and Penny Hawk. He also contributes to Money Morning as the Quant Analysis Specialist.
