Why FedEx (FDX) is a Top Value Stock for the Long-Term
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
FedEx (FDX)
Based in Memphis, TN, FedEx Corporation is the leader in global express delivery services. The company, founded in 1971, provides a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand. The company is currently reporting, primarily through the FedEx Express , FedEx Ground, FedEx Freight and FedEx Services segments. These segments contributed 47.4%, 37.2% and 10.7% respectively to the company’s total revenues in fiscal 2023. The FedEx Services segment accounted for the balance.
FDX is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 14.3X for the current fiscal year compared to the Transportation - Air Freight and Cargo industry's P/E of 17X. Additionally, FDX has a PEG Ratio of 1.1 and a Price/Cash Flow ratio of 8.1X. Value investors should also note FDX's Price/Sales ratio of 0.8X.
A company's earnings performance is important for value investors as well. For fiscal 2025, two analysts revised their earnings estimate higher in the last 60 days for FDX, while the Zacks Consensus Estimate has increased $0.01 to $20.53 per share. FDX also holds an average earnings surprise of 7.8%.
Investors should take the time to consider FDX for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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FedEx Corporation (FDX) : Free Stock Analysis Report