After my article on FedEx (FDX) last week, I received several emails inquiring about other stocks that may be in the same/similar industry as FedEx. Some traders were simply interested in lesser price stocks than FDX to potentially trade now, while others wanted to watch some of FedEx’s competitors going into their respective upcoming earnings releases.
After doing a little research, I found (3) potential candidates that I thought were worth keeping an eye on both now and/or going into their earnings releases: UPS, EXPD, and UTIW. Yesterday we analyzed UPS, today we will be looking at EXPD.
Below is a 1 yr. chart of EXPD (Expeditors International of Washington, Inc.) with my added notations:
EXPD’s earnings do not come out for another couple of months, so this stock is worth making a trade on in the short term if you do not want to wait for the earnings release. With EXPD, the main level to watch at this point is the $50 level. If EXPD were to break above the $50 resistance, $55 would be the next level to watch on the way up.
The Tale of the Tape: FDX released its 4th quarter earnings report last week and EXPD is in the same industry. Like UPS, EXPD is another lesser-priced alternative to FDX, but to those interested EXPD also has earnings coming up on August 2nd. The $50 level is the main price to watch now. Depending on your view and market position, a short position could be entered on a rally up to $50, while a long position could be entered on a break above the $50 level. If you are waiting until the earnings release, and the stock is already above $50 at that point, $55 becomes a level of interest. Once the stock is above $50, look for that $50 level to become new support for a potential trade and $55 to be the next level of resistance.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT