(This is The Best Stocks in the Market, brought to you by Josh Brown and Sean Russo of Ritholtz Wealth Management.) Josh — Merry Christmas, everyone. Let me show you one thing. FedEx (FDX) was sold off on Friday as institutional money poured in to buy the stock at a loss. When you see long, white (hollow instead of red) daily candlesticks like this, it’s a sign that the stock is building up meaningfully on a push. You can see the buying frenzy by looking at the black volume bar below. A long hollow daily candlestick is formed when a stock opens well below its last closing price but closes the session higher than where it started, producing a white (hollow) body with a wide total range. This typically reflects a volatile day where sellers first push the price down (often due to news, earnings, or a drop in the gap) before buyers step in aggressively and push the stock higher toward the closing price. Technicians typically interpret this as a bullish intraday reversal or a rejection of the low, especially when accompanied by rising volume. This indicates that demand from buyers overwhelmed the initial selling pressure and buyers controlled the session by the end of the day. Fedex is an institutional stock, not the name of a retailer. The company’s institutional shareholder base is around 80%, while the average large-cap shareholder is 65% to 70%. It’s professional money that buys that drop and lifts this name up. Sean is going to tell you more about the turnaround at FDX. There are also some references to another transit agency name, Railway CSX (CSX). Before we get into that, some stats on the “Best Stocks on the Market” list… Sector Leaderboard As of December 22nd, there are 193 names on the “Best Stocks on the Market” list. Top Sector Rankings: Top Industries: Top 5 Blue-chip Stocks by Relative Strength: Sectors to Watch: Transportation Sean — The Dow Jones Transportation Average is within 1% of a new high. The index has some grit, with holdings like Union Pacific, FedEx, Old Dominion, and J.B. Hunt. Many of these transportation options involve monetary costs. Rising interest rates typically make borrowing more expensive for companies that rely heavily on debt to purchase aircraft, trucks, ships and rail equipment, which can squeeze profits. Higher tax rates also tend to slow the economy, reducing demand for transportation and travel as businesses move less goods and consumers spend less, as does the snip-snap nature of tariffs, which are expected to be eliminated for some time. What we are seeing heading into 2026 is a decidedly different situation: lower fuel costs, easing interest rates, accommodative policies, and some easing in raw material prices. That change is starting to show up in the underlying railway data. CSX recorded volume growth in the latest quarter, driven by strong integrated demand and strength in several commodity categories such as minerals, fertilizers and metals, while thermal coal volumes surged due to higher electricity demand. Coal tonnage increased 22% year over year due to higher electricity demand and natural gas prices. Even with its weaknesses, the company is poised for growth by converting truck freight to rail and tends to benefit from lower fuel and financing costs. Let’s move on to FedEx (FDX), which just released its earnings last week. Revenue increased 7%, with U.S. domestic baggage revenue up 12% and cargo revenue down 2%. U.S. domestic sales volumes increased 6%, while international sales volumes, particularly from China to the United States, decreased, partially offset by growth from Asia to Europe and growth within Asia. The cargo sector, which primarily handles business-to-business transactions, is struggling. In the quarter, average daily shipments decreased 4% year over year, and adjusted operating margin decreased 300 basis points. The industrial economy is relatively weak, which weighs on shipments. The positive side to this is that FedEx’s pricing discipline is helping to cushion the impact of lower volumes. Cargo yields turned positive during the quarter. This means that the price trend has changed from being flat or falling to rising. Despite a 4% decrease in shipment volume, revenue per shipment increased by 2% due to increased shipment weight and higher revenue per shipment. Service quality is also at the highest level in the company’s history, with on-time performance reaching its highest level since the third quarter of fiscal 2021. It is important to note that FedEx plans to spin off its cargo operations in June 2026 to create a new publicly traded company under the ticker FDXF. FedEx believes this will unlock the value of both segments of its business, just in time for what the market values as a comfortable transportation environment. Josh — Before we get into the FedEx technicals, can we pause to understand just how big of a challenge this stock is going to face? Take a look at this long-term price chart. A notable resistance level is this $300-$315 area, which has kind of put a lid on this stock for 2020-2021 and 2024. Is third time a charm? As you know, I don’t believe in triple tops, so I’ll give it a try. Now, it’s a candle. This stock has accumulated a lot. Sometime in September, perhaps when the Fed cut interest rates for the first time this year, stocks found a meaningful bottom and have been on an escalator ever since. For investors, I like an entry with a stop at the 50-day moving average around $260. Roll up when you hit $300. Traders can wait for a breakout above $300, but the first resistance is not there until $315. Okay, let’s try CSX. Buy this now. CSX is in the midst of a textbook breakout and retest, with the former resistance in the $35-$36 zone now acting as support after a decisive rally in the stock price. After the breakout, the price retreated in an orderly manner to around the rising 50-day moving average of $35.50, which is also in line with the previous breakout level. That retest held, but the sellers were unable to regain control, and instead of breaking down, the RSI cooled into the mid-50s and reset momentum. The breakout will remain intact as long as CSX sustains above $35.50. The range should expand further from here. Like FedEx, this stock has been in a period of consolidation for a long time and is currently challenging the upper end of a range dating back to Christmas 2021. Above that level, in this third attempt, the old seller is no longer present. I like this setup both in the long and short term. The trader can protect the stop at $35.50 at the risk of potential downside. If you’re feeling more adventurous, you can lengthen the string to the Thanksgiving low of $33.50. I hope you have a happy holiday season. We’re taking a break this Thursday, but we’ll be back next Monday with an all-new Best Stocks column. Disclosure: (none) All opinions expressed by CNBC Pro contributors are solely their own and do not reflect the opinions of CNBC, NBC UNIVERSAL, its parent or affiliate companies, and may have been previously disseminated on television, radio, the Internet, or another medium. The above is subject to our Terms of Use and Privacy Policy. This content is provided for informational purposes only and does not constitute financial, investment, tax, or legal advice or a recommendation to purchase any securities or other financial assets. The Content is general in nature and does not reflect any individual’s unique personal circumstances. The above may not be appropriate for your particular situation. Before making any financial decisions, you should strongly consider seeking the advice of your own financial or investment advisor. Investments involve risk. The analysis examples included in this article are examples only. The views and opinions expressed are those of the contributors and do not necessarily reflect the official policy or position of Ritholtz Wealth Management, LLC. Josh Brown is the Chief Executive Officer of Riholtz Wealth Management and may maintain securities positions in the securities discussed. The assumptions made within the analysis do not reflect the position of RITHOLTZ WEALTH MANAGEMENT, LLC or the full disclosure. Click here for the full disclaimer.
