FedEx Dataworks, the insights and intelligence subsidiary of FedEx Corporation (NYSE:FDX), partnered with Stripe to help reduce friction in global commerce for small- and medium-sized businesses or SMBs.
The long-term, strategic collaboration will combine data from FedEx’s global logistics network with Stripe’s financial infrastructure.
Addressing The Growing Need for SMB Financing
The combined solutions aim to leverage supply chain intelligence and financial infrastructure to support and streamline the financing process for logistics-heavy SMB customers of FedEx.
The solution will assess real-time operational indicators such as shipment activity, inventory movement, and fulfillment performance to deploy tailored funding for SMBs through Stripe Capital.
FedEx Expands Global Payment Checkouts
Stripe processes over $1.9 trillion of payments annually. The partnership expands payment options for FedEx customers globally with a wider variety of local payment methods.
It will enable FedEx to add more than 50 new payment methods to its global checkout experience through Stripe.
FedEx Technical Analysis
FedEx is still in a defined downtrend: the stock is trading 2.7% below its 20-day SMA, 7.6% below its 50-day SMA, 11.1% below its 100-day SMA, and 14.6% below its 200-day SMA.
The trend picture also remains pressured by the death cross that formed in August (the 50-day SMA below the 200-day SMA), which tends to keep longer-term traders cautious until price can reclaim key averages.
On momentum, MACD is above its signal line with a positive histogram, which suggests downside pressure is easing versus the prior downswing.
- Key Resistance: $341.50 — a nearby area where rebounds can stall, sitting close to the longer-term moving-average zone overhead
- Key Support: $279.00 — a nearby floor to watch after recent weakness, with buyers previously stepping in around this area
Earnings and Analyst Outlook
FedEx’s next major scheduled catalyst is its Oct. 28 earnings report.
Wall Street expects EPS of $3.56, down from $4.51 a year earlier, on revenue of $22.51 billion versus $22.20 billion in the prior-year period.
FedEx trades at a price-to-earnings ratio of about 15.6 times.
The stock carries a Buy rating with an average price forecast of $360.62.
Recent analyst actions include JPMorgan maintaining Overweight while lowering its forecast to $399 on Oct. 5 and Evercore ISI maintaining In-Line while raising its forecast to $351 on Sept. 28.
Top ETF Exposure
- Corgi Ports, Rail & Freight ETF (BATS:DOCK): 4.49% Weight
- Corgi Aerospace & Commercial Aviation ETF (BATS:AV): 3.56% Weight
- Corgi Shipping & Global Logistics ETF (BATS:HULL): 4.03% Weight
Significance: FDX carries significant weight in these funds. Significant inflows or outflows in these ETFs will likely force automatic buying or selling of the stock.
FDX Price Action: FedEx shares were down 0.15% at $288.70 at the time of publication on Tuesday, according to Benzinga Pro data.
Image via Shutterstock
Login to comment