Out Fox The $treet

Stocks to watch on Wednesday: Slack (WORK) - report after report continues to suggest Microsoft (MSFT ) has become aggressive in pushing Office clients into their competitor to Slack. Teams now has far more users and Slack is facing decelerating growth. My price target remains $17.50 and the chart suggests the risk remains to the downside. FedEx (FDX) - the package delivery company remains a disaster. The stock appears to have more downside risk after another quarter of missing analyst estimates. FedEx is an interesting stock to watch as the company inevitably hits bottom as Europe improves. Disclosure: No position. Please review the disclaimer page for more details. 

FedEx gets hit by Amazon fears every couple of years. The online retail giant isn't even a 3% revenue customer. Analyst estimates shouldn't take a hit from the expected growth of Amazon Air. The stock is too cheap trading at about 10.4x FY20 EPS estimates. The time to buy  FedEx Corporation  ( FDX ) is when the market gets anxiety over  Amazon  ( AMZN ) expanding into the package delivery space. While the large online retailer is always a threat, FedEx should continue riding the delivery economy higher. Read the full article on Seeking Alpha. 

FedEx smashed FQ3 estimates on solid volumes and higher margins. The stock sold off on unwarranted expectations that Amazon could somehow disrupt the delivery sector so quickly. The stock is a bargain at the current valuation based on historical prices. Despite ongoing worries about a future entrant into the delivery sector,  FedEx (NYSE: FDX )  continues to produce solid results that aren't impacted by competitive threats. The stock price though suggests a big impact is on the way from  Amazon.com (NASDAQ: AMZN ) . Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

With news the last week so that the USPS is planning to slow down 1st class mail, one has to wonder who could fill the void. After all, huge volumes of mail count on that next day delivery. Actually the facts were astonishing to me. 42% of mail reaches its destination within 1 day and just about all 1st class mail makes it within 3 days. That is a major portion of the mail that would now drop from 1 to 2 or 3 days. What about if the postal service stops Saturday delivery? Mail something on Thursday for a few blocks away and it might take until Monday or Tuesday to arrive. Actually it might not be a huge deal as most people using the mail don't expect next day delivery. Still it's a reduction in service that undoubtedly some people rely on. Less services will reduce the benefit of the $3B cuts in costs. Why not focus on cutting the costs of keeping existing services? Less benefits for employees, reducing redundant processing facilities, and closing offices in small cities. J...

After the bell, FedEx (FDX) had a huge raise to earnings for Q4. FDX increased earnings to $1.10 for Q4 which was 30% above analyst estimates. With the stock trading with a forward PE of 20 the market clearly saw better then expected earnings on the way, but I seriously doubt this was envisioned. At the same time, earnings are still a lot lower then levels in the prior year. Just goes to show how overly pessimistic stock expectations got when the market hit lows in March. Heck FDX nearly doubled their own low end estimate of $.65. UPS should see a decent gain for our Net Payout Yield and Hedged Growth portfolios. They still sport a 3% dividend yield plus expected stock buybacks making a very attractive investment even with further gains. Significant growth in international markets will be a constant theme that our stock picks will be aligned to take advantage. “FedEx will exceed previous earnings guidance in the second quarter primarily due to better-than-expected growth in FedE...