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

Zacks Equity Research

FedEx (FDX) closed at $160.52 in the latest trading session, marking a +1.06% move from the prior day. The stock lagged the S&P 500's daily gain of 1.5%. Meanwhile, the Dow gained 1.48%, and the Nasdaq, a tech-heavy index, added 1.95%.

Coming into today, shares of the package delivery company had lost 5.43% in the past month. In that same time, the Transportation sector lost 4.99%, while the S&P 500 lost 4.19%.

FDX will be looking to display strength as it nears its next earnings release. 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.61 per share and revenue of $71.10 billion. These totals would mark changes of -5.86% and +2.02%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for FDX. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FDX currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, FDX is holding a Forward P/E ratio of 10.87. This represents a no noticeable deviation compared to its industry's average Forward P/E of 10.87.

Investors should also note that FDX has a PEG ratio of 0.86 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 Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.31 at yesterday's closing price.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 21% 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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