FedEx (FDX) Gains As Market Dips: What You Should Know
In the latest trading session, FedEx (FDX) closed at $214.67, marking a +0.08% move from the previous day. This change outpaced the S&P 500's 1.04% loss on the day. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 5.88%.
Coming into today, shares of the package delivery company had gained 18.33% in the past month. In that same time, the Transportation sector gained 11.05%, while the S&P 500 gained 8.97%.
Investors will be hoping for strength from FedEx as it approaches its next earnings release. On that day, FedEx is projected to report earnings of $2.72 per share, which would represent a year-over-year decline of 40.74%. Our most recent consensus estimate is calling for quarterly revenue of $22.63 billion, down 4.26% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.60 per share and revenue of $91.93 billion, which would represent changes of -34.01% and -1.7%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for FedEx. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. FedEx currently has a Zacks Rank of #3 (Hold).
Digging into valuation, FedEx currently has a Forward P/E ratio of 15.78. For comparison, its industry has an average Forward P/E of 15.78, which means FedEx is trading at a no noticeable deviation to the group.
We can also see that FDX currently has a PEG ratio of 1.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.91 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 219, putting it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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