FedEx (FDX) Outpaces Stock Market Gains: What You Should Know
FedEx (FDX) closed at $173.27 in the latest trading session, marking a +1.11% move from the prior day. This change outpaced the S&P 500's 0.76% gain on the day. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 0.71%.
Prior to today's trading, shares of the package delivery company had gained 5.45% over the past month. This has outpaced the Transportation sector's gain of 0.78% and the S&P 500's gain of 0.75% in that time.
Wall Street will be looking for positivity from FDX as it approaches its next earnings report date. This is expected to be March 19, 2019. On that day, FDX is projected to report earnings of $3.11 per share, which would represent a year-over-year decline of 16.4%. Meanwhile, our latest consensus estimate is calling for revenue of $17.68 billion, up 7.01% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.91 per share and revenue of $70.92 billion. These totals would mark changes of +3.92% and +8.35%, respectively, from last year.
Investors might also notice 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 7.94% lower. FDX currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, FDX is holding a Forward P/E ratio of 10.77. This represents a discount compared to its industry's average Forward P/E of 10.8.
It is also worth noting that FDX currently has a PEG ratio of 0.84. 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 1.1 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 230, which puts it in the bottom 11% 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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