Why Josh Brown Expects FedEx Stock To Go Even Higher

FedEx Corp FDX is on pace for its best day since 1993 after the company announced actions to enhance shareholder value on Tuesday.

What Happened: FedEx raised its quarterly dividend from 75 cents per share to $1.15 per share. The company also added a total shareholder return performance metric to its executive compensation program and appointed Amy Lane and Jim Vena to its board.

What Else Happened: Ritholtz Wealth Management's Josh Brown picked up FedEx shares for a trade last week, but he's not looking to book profits despite Tuesday's rally.

"I'm going to let this thing play out," Brown said Tuesday on CNBC's "Fast Money Halftime Report."

See Also: Looking At FedEx's Recent Whale Trades

He noted that FedEx said the company will further detail its plans to drive long-term shareholder value at its upcoming investor day later this month. It will be the first time the company has held its investor day in more than a decade, he added. Brown expects the event to be a catalyst for the stock. 

Why It Matters: FedEx confirmed that it has significant support around the $195 level last week, Brown said. There isn't any real resistance until the stock trades up to about $240 per share, he added.

"If I can ride it to that level, from a risk/reward standpoint it will have been a successful trade, so we will see what happens from here, but I am staying long," Brown said.

FDX Price Action: FedEx has a 52-week high of $304.59 and a 52-week low of $192.82.

The stock was up 13.7% at $228.60 at press time, according to data from Benzinga Pro.

Photo: courtesy of FedEx.