I decided to take a look at Fedex on the monthly chart and found this really nice parallel channel going back to 2000. A massive 213% gain since the march lows and it just took out the all time highs.
We are getting close to the top of that channel but even a pullback and bounce off of 274 would present a decent R/R ratio. That is some crazy price movement and I think Covid just factored in what the trend already was. More people will continue to shop online and get their goods delivered. I think that is a no brainer at this point (especially with Covid cases rising). As a long-term investment is this really cheap equity? I don't think so but Fedex has the infrastructure in place to continue to expand and grow as less people go to the stores. That trend is likely to continue....
Good Luck! This is not financial advice!
We are getting close to the top of that channel but even a pullback and bounce off of 274 would present a decent R/R ratio. That is some crazy price movement and I think Covid just factored in what the trend already was. More people will continue to shop online and get their goods delivered. I think that is a no brainer at this point (especially with Covid cases rising). As a long-term investment is this really cheap equity? I don't think so but Fedex has the infrastructure in place to continue to expand and grow as less people go to the stores. That trend is likely to continue....
Good Luck! This is not financial advice!