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

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Zacks Equity Research
·3 min read
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FedEx (FDX) closed the most recent trading day at $249.67, moving -1.5% from the previous trading session. This change lagged the S&P 500's 0.15% loss on the day. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq lost 0.07%.

FDX will be looking to display strength as it nears its next earnings release. In that report, analysts expect FDX to post earnings of $3.25 per share. This would mark year-over-year growth of 130.5%. Our most recent consensus estimate is calling for quarterly revenue 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.

Investors should also note any recent changes to analyst estimates for FDX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 1.31% higher within the past month. FDX is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, FDX is holding a Forward P/E ratio of 14.73. For comparison, its industry has an average Forward P/E of 15.22, which means FDX is trading at a discount to the group.

Meanwhile, FDX's PEG ratio is currently 1.23. 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. FDX's industry had an average PEG ratio of 1.82 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 18, putting it in the top 8% 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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