What Happened:

Shares of parcel and cargo delivery company FedEx (NYSE:FDX) fell 15.4% in the morning session after the company reported Q3 earnings results. Its EPS missed, and its revenue fell short of Wall Street's estimates. The outlook also was underwhelming, with full-year EPS guidance below expectations. The company noted the quarter was challenging as it observed weaker-than-expected demand in the U.S. domestic package market. Management attributed the weakness to several factors, including a weak industrial economy and shifting customer preferences towards lower-cost services. Overall, this was a mediocre quarter.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy FedEx? Access our full analysis report here, it’s free.

What is the market telling us:

FedEx’s shares are not very volatile than the market average and over the last year have had only 3 moves greater than 5%. Moves this big are very rare for FedEx and that is indicating to us that this news had a significant impact on the market’s perception of the business.

FedEx is up 1.4% since the beginning of the year, but at $255.45 per share it is still trading 18.5% below its 52-week high of $313.52 from July 2024. Investors who bought $1,000 worth of FedEx’s shares 5 years ago would now be looking at an investment worth $1,717.

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