FedEx (FDX) Falls More Steeply Than Broader Market: What Investors Need to Know
FedEx (FDX) ended the recent trading session at $253.29, demonstrating a -0.88% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.65%. Meanwhile, the Dow experienced a drop of 0.49%, and the technology-dominated Nasdaq saw a decrease of 0.96%.
Prior to today's trading, shares of the package delivery company had gained 8.04% over the past month. This has outpaced the Transportation sector's gain of 1.47% and the S&P 500's gain of 3.27% in that time.
Market participants will be closely following the financial results of FedEx in its upcoming release. The company plans to announce its earnings on March 21, 2024. It is anticipated that the company will report an EPS of $3.55, marking a 4.11% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $22.02 billion, indicating a 0.68% decline compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $17.62 per share and a revenue of $88.18 billion, signifying shifts of +17.78% and -2.14%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for FedEx. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.8% lower. Currently, FedEx is carrying a Zacks Rank of #4 (Sell).
In the context of valuation, FedEx is at present trading with a Forward P/E ratio of 14.5. This represents a discount compared to its industry's average Forward P/E of 16.26.
Investors should also note that FDX has a PEG ratio of 1.04 right now. 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 average PEG ratio for the Transportation - Air Freight and Cargo industry stood at 1.55 at the close of the market yesterday.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 236, placing it within the bottom 7% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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FedEx Corporation (FDX) : Free Stock Analysis Report
