Downgraded Berenberg FedEx Corporation (NYSE: FDX) to “hold back” from “buy” this morning, calling the stock “show me a story,” while also reducing its price target from $330 to $275. The company noted the delivery name’s unreliable execution history, as well as growing inflation risks, which could overshadow the company’s recent CEO change and new strategy. At last check, FDX is down 1.9% to trade at $222.45.
Last time we checked in with FedEx Inventory, he was about to enter the earnings confessional. The stock came in just below the $250 level after its quarterly report — its highest level since February — but pivoted lower soon after. Stocks are still enjoying support from their 30-day moving average, despite falling 25.3% year-over-year.
Short-term options traders are firmly bearish. This is in line with Schaeffer’s put/call open interest ratio (SOIR) of 1.18, which is in the 89th percentile of the annual readings.
7 manufacturing stocks that will overcome the current difficulties
The manufacturing industry was one of the hardest hit in 2020. During the first months of the coronavirus pandemic, many businesses were forced to shut down. However, opportunistic investors have been keeping tabs on many of these companies as takeover stocks. And at the beginning of 2021, the emergence of several vaccines allowed the reopening of businesses. Unsurprisingly, manufacturing stocks were among the biggest gainers.
But where are these stocks going in 2022? In December, US manufacturers reported their slowest pace of growth in 11 months. A closely tracked index of U.S.-based manufacturers fell to 58.7% in the last month of 2021. That figure was slightly lower than November’s 61.1% according to the Institute for Supply Management.
Still, any number above 50% signals an expansion. And the number is only slightly below the 60% level that signifies exceptional growth.
Ironically, it is the virus that continues to provide a headwind. Supply chains are unfolding but not fast enough to avoid material shortages. Controversy surrounding vaccination mandates leads to labor shortages.
However, manufacturing stocks are highly likely to have a strong year in 2022. And even if they don’t, many of these stocks pay a reliable dividend. That is why we have prepared this special presentation on manufacturing stocks that will overcome the current difficulties.
See the “7 manufacturing stocks that will overcome the current difficulties”.