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FedEx (FDX) Outpaces Stock Market Gains: What You Should Know

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FedEx (FDX) closed the most recent trading day at $310.75, moving +0.7% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.19%.

Coming into today, shares of the package delivery company had gained 7.33% in the past month. In that same time, the Transportation sector gained 3.29%, while the S&P 500 gained 0.37%.

Wall Street will be looking for positivity from FDX as it approaches its next earnings report date. This is expected to be June 24, 2021. In that report, analysts expect FDX to post earnings of $4.87 per share. This would mark year-over-year growth of 92.49%. Our most recent consensus estimate is calling for quarterly revenue of $21.42 billion, up 23.38% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $18.04 per share and revenue of $81.44 billion. These totals would mark changes of +89.89% and +17.66%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for FDX. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Within the past 30 days, our consensus EPS projection has moved 0.47% higher. FDX is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, FDX is currently trading at a Forward P/E ratio of 17.11. For comparison, its industry has an average Forward P/E of 15.81, which means FDX is trading at a premium to the group.

It is also worth noting that FDX currently has a PEG ratio of 1.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.89 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 7, putting it in the top 3% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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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