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 (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.