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FedEx (FDX) Dips More Than Broader Markets: What You Should Know

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FedEx (FDX) closed the most recent trading day at $217.17, moving -1.9% from the previous trading session. This change lagged the S&P 500's daily loss of 1.08%. Meanwhile, the Dow lost 0.81%, and the Nasdaq, a tech-heavy index, added 0.22%.

Coming into today, shares of the package delivery company had gained 6.4% in the past month. In that same time, the Transportation sector gained 1.12%, while the S&P 500 gained 1.03%.

FedEx will be looking to display strength as it nears its next earnings release, which is expected to be June 23, 2022. On that day, FedEx is projected to report earnings of $6.80 per share, which would represent year-over-year growth of 35.73%. Our most recent consensus estimate is calling for quarterly revenue of $24.35 billion, up 7.91% from the year-ago period.

Investors might also notice recent changes to analyst estimates for FedEx. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FedEx is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, FedEx is currently trading at a Forward P/E ratio of 9.8. This represents a discount compared to its industry's average Forward P/E of 14.46.

We can also see that FDX currently has a PEG ratio of 0.82. 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 was holding an average PEG ratio of 1.62 at yesterday's closing price.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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