FedEx (FDX) Dips More Than Broader Markets: What You Should Know
In the latest trading session, FedEx (FDX) closed at $203.22, marking a -0.41% move from the previous day. This change lagged the S&P 500's 0.3% loss on the day. Elsewhere, the Dow lost 0.71%, while the tech-heavy Nasdaq added 0.84%.
Heading into today, shares of the package delivery company had gained 10.85% over the past month, outpacing the Transportation sector's gain of 2.73% and the S&P 500's loss of 2% in that time.
Wall Street will be looking for positivity from FedEx as it approaches its next earnings report date. This is expected to be March 16, 2023. In that report, analysts expect FedEx to post earnings of $2.68 per share. This would mark a year-over-year decline of 41.61%. Meanwhile, our latest consensus estimate is calling for revenue of $22.63 billion, down 4.29% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.51 per share and revenue of $91.78 billion. These totals would mark changes of -34.45% and -1.85%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for FedEx. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.67% lower within the past month. FedEx is currently a Zacks Rank #3 (Hold).
In terms of valuation, FedEx is currently trading at a Forward P/E ratio of 15.11. For comparison, its industry has an average Forward P/E of 15.11, which means FedEx is trading at a no noticeable deviation to the group.
It is also worth noting that FDX currently has a PEG ratio of 1.26. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.67 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 215, putting it in the bottom 15% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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FedEx Corporation (FDX) : Free Stock Analysis Report
