FedEx (FDX) Gains As Market Dips: What You Should Know
FedEx (FDX) closed at $131.15 in the latest trading session, marking a +0.55% move from the prior day. This move outpaced the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, lost 0.46%.
Wall Street will be looking for positivity from FDX as it approaches its next earnings report date. This is expected to be June 30, 2020. On that day, FDX is projected to report earnings of $2.27 per share, which would represent a year-over-year decline of 54.69%. Our most recent consensus estimate is calling for quarterly revenue of $16.90 billion, down 5.07% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.06 per share and revenue of $68.85 billion. These totals would mark changes of -41.62% and -1.22%, respectively, from last year.
Any recent changes to analyst estimates for FDX should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 2.13% lower. FDX is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, FDX is currently trading at a Forward P/E ratio of 14.4. For comparison, its industry has an average Forward P/E of 14.76, which means FDX is trading at a discount to the group.
Meanwhile, FDX's PEG ratio is currently 1.2. 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 1.82 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% 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.
To follow FDX in the coming trading sessions, be sure to utilize Zacks.com.
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