FedEx (FDX) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, FedEx (FDX) closed at $174.10, marking a +0.24% move from the previous day. This move outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.68%.
Prior to today's trading, shares of the package delivery company had gained 8.45% over the past month. This has lagged the Transportation sector's gain of 9.85% and the S&P 500's gain of 9.43% in that time.
Investors will be hoping for strength from FDX as it approaches its next earnings release, which is expected to be March 19, 2019. The company is expected to report EPS of $3.11, down 16.4% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.68 billion, up 7.01% from the year-ago period.
FDX's full-year Zacks Consensus Estimates are calling for earnings of $15.92 per share and revenue of $70.92 billion. These results would represent year-over-year changes of +3.98% and +8.35%, 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.16% higher within the past month. FDX currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that FDX has a Forward P/E ratio of 10.91 right now. This valuation marks a discount compared to its industry's average Forward P/E of 11.08.
Meanwhile, FDX's PEG ratio is currently 0.86. 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. FDX's industry had an average PEG ratio of 1.14 as of yesterday's close.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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