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FedEx (FDX) Gains But Lags Market: What You Should Know

Zacks Equity Research

FedEx (FDX) closed at $152.55 in the latest trading session, marking a +0.38% move from the prior day. This move lagged the S&P 500's daily gain of 1.1%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 1.32%.

Coming into today, shares of the package delivery company had lost 13.59% in the past month. In that same time, the Transportation sector lost 7.15%, while the S&P 500 lost 5.05%.

FDX will be looking to display strength as it nears its next earnings release, which is expected to be September 17, 2019. The company is expected to report EPS of $3.20, down 7.51% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $17.14 billion, up 0.49% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $14.61 per share and revenue of $71.10 billion, which would represent changes of -5.86% and +2.02%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for FDX. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 remained stagnant within the past month. FDX currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, FDX is holding a Forward P/E ratio of 10.4. Its industry sports an average Forward P/E of 10.4, so we one might conclude that FDX is trading at a no noticeable deviation comparatively.

Meanwhile, FDX's PEG ratio is currently 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 industry currently had an average PEG ratio of 1.26 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 212, putting it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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