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Shares of FedEx (#FDX) are up +124.8% over the past year. Once investors understood that everyone would be buying online during the pandemic and Fedex would be delivering, they gobbled shares up!
But now the stock is digesting its new price level between $240 and $300. It's not sure where to go. Buyers don't know if they should buy more, or transform into sellers and take profit.
What is known is the earnings. And their earnings that they reported yesterday were EXPLOSIVE. The company announced Q4 Non-GAAP EPS of $5.01 (beats by $0.01) and revenue of $22.6B (+29.9% Y/Y).
But is the growth sustainable? Or was this a once in a lifetime blip? Well, ask yourself how people will be buying holiday gifts this year when November and December roll around. Will it be online? If so, who will deliver those gifts? If you believe it's FedEx then you must believe that revenues will only continue to go higher and their stock is an investment to be made.