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Takeaway: Industrials sector head Jay Van Sciver remains bullish on FDX, but says it may be time to take some profits.

Hedgeye Industrials sector head Jay Van Sciver says it may be time to take some profits in FDX. 

Stock Update: FedEx Trim Time (FDX) - fdx

While Van Sciver remains bullish on the stock, he says, “We would lighten up on our FDX long here – like sell half - for a few key reasons.

First, the shares have moved significantly higher within our fair value range.

Second, the details of the most recent quarter lead us to expect an opportunity to buy the shares back lower around FY2Q results.

Finally, we had expected capacity and inventory trends to turn more supportive than they have.

We are not dropping our long-term thesis and remain positive on the name, but acknowledge that no long-term thesis plays out without disruptions and trading opportunities.” Taking a magnifying glass to the company’s financials, Van Sciver notes “several unusual items that helped the Express margin, potentially introducing ‘choppiness’ to FY2Q.”