FedEx (FDX) closed the most recent trading day at $169.55, moving +1.57% from the previous trading session. This change outpaced the S&P 500's 1.24% gain on the day. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 1.35%.
Prior to today's trading, shares of the package delivery company had gained 19.05% over the past month. This has outpaced the Transportation sector's gain of 8.04% and the S&P 500's gain of 7.09% in that time.
Investors will be hoping for strength from FDX as it approaches its next earnings release. The company is expected to report EPS of $2.28, down 25.25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.25 billion, up 1.19% from the year-ago period.
FDX's full-year Zacks Consensus Estimates are calling for earnings of $10.03 per share and revenue of $70.93 billion. These results would represent year-over-year changes of +5.58% and +2.47%, respectively.
Investors should also note any recent changes to analyst estimates for FDX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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. Within the past 30 days, our consensus EPS projection has moved 6.86% higher. FDX is currently a Zacks Rank #3 (Hold).
Looking at its valuation, FDX is holding a Forward P/E ratio of 16.65. This valuation marks a premium compared to its industry's average Forward P/E of 16.59.
Also, we should mention that FDX has a PEG ratio of 1.39. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 25% 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.
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