Yahoo Finance FedEx (FDX) Gains But Lags Market: What You Should Know
FedEx (FDX) closed the most recent trading day at $251.96, moving +0.98% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.39%. Elsewhere, the Dow gained 0.83%, while the tech-heavy Nasdaq added 1.97%.
Heading into today, shares of the package delivery company had lost 8.69% over the past month, lagging the Transportation sector's loss of 0.12% and the S&P 500's gain of 2.58% in that time.
Wall Street will be looking for positivity from FDX as it approaches its next earnings report date. On that day, FDX is projected to report earnings of $3.25 per share, which would represent 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $17.24 per share and revenue of $79.09 billion, which would represent changes of +81.47% and +14.26%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for FDX. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection has moved 2.21% higher. FDX is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, FDX is holding a Forward P/E ratio of 14.65. For comparison, its industry has an average Forward P/E of 15.18, which means FDX is trading at a discount to the group.
Also, we should mention that FDX has a PEG ratio of 1.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FDX's industry had an average PEG ratio of 1.81 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 23, putting it in the top 10% 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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