FedEx (FDX) Dips More Than Broader Markets: What You Should Know
FedEx (FDX) closed the most recent trading day at $259.60, moving -0.95% from the previous trading session. This move lagged the S&P 500's daily loss of 0.81%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 1.69%.
Prior to today's trading, shares of the package delivery company had gained 8.14% over the past month. This has lagged the Transportation sector's gain of 9.85% and outpaced the S&P 500's gain of 3.56% in that time.
FDX will be looking to display strength as it nears its next earnings release, which is expected to be March 18, 2021. In that report, analysts expect FDX to post earnings of $3.25 per share. This would mark year-over-year growth of 130.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.72 billion, up 12.77% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.24 per share and revenue of $79.09 billion. These totals would mark changes of +81.47% and +14.26%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for FDX. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FDX is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note FDX's current valuation metrics, including its Forward P/E ratio of 14.76. This represents a discount compared to its industry's average Forward P/E of 15.06.
Investors should also note that FDX has a PEG ratio of 1.23 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Transportation - Air Freight and Cargo industry currently had an average PEG ratio of 1.65 as of yesterday's close.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 71, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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