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

Zacks Equity Research

FedEx (FDX) closed the most recent trading day at $176.01, moving +1.29% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.47%. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq added 0.85%.

Coming into today, shares of the package delivery company had gained 11.4% in the past month. In that same time, the Transportation sector gained 2.41%, while the S&P 500 gained 2.08%.

Wall Street will be looking for positivity from FDX as it approaches its next earnings report date. On that day, FDX is projected to report earnings of $3.20 per share, which would represent a year-over-year decline of 7.51%. Meanwhile, our latest consensus estimate is calling for revenue of $17.14 billion, up 0.49% from the prior-year quarter.

FDX's full-year Zacks Consensus Estimates are calling for earnings of $14.61 per share and revenue of $71.10 billion. These results would represent year-over-year changes of -5.86% and +2.02%, respectively.

Any recent changes to analyst estimates for FDX should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. Within the past 30 days, our consensus EPS projection has moved 8.34% lower. FDX is currently sporting a Zacks Rank of #5 (Strong Sell).

Digging into valuation, FDX currently has a Forward P/E ratio of 11.9. For comparison, its industry has an average Forward P/E of 11.9, which means FDX is trading at a no noticeable deviation to the group.

Investors should also note that FDX has a PEG ratio of 0.94 right now. 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 industry currently had an average PEG ratio of 1.28 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 225, putting it in the bottom 13% 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.

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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