U.S. Markets open in 1 hr 38 mins

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

Zacks Equity Research

FedEx (FDX) closed at $161.87 in the latest trading session, marking a -1.53% move from the prior day. This change lagged the S&P 500's 0.09% gain on the day. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq lost 0.17%.

Prior to today's trading, shares of the package delivery company had gained 0.09% over the past month. This has lagged the Transportation sector's gain of 2.78% and the S&P 500's gain of 4.92% in that time.

Investors will be hoping for strength from FDX as it approaches its next earnings release, which is expected to be September 17, 2019. The company is expected to report EPS of $3.20, down 7.51% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.14 billion, up 0.49% from the year-ago period.

FDX's full-year Zacks Consensus Estimates are calling for earnings of $14.70 per share and revenue of $71.08 billion. These results would represent year-over-year changes of -5.28% and +1.99%, respectively.

Any recent changes to analyst estimates for FDX should also be noted by investors. 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. 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 0.08% lower. FDX currently has a Zacks Rank of #3 (Hold).

Investors should also note FDX's current valuation metrics, including its Forward P/E ratio of 11.18. This represents a premium compared to its industry's average Forward P/E of 10.74.

Investors should also note that FDX has a PEG ratio of 0.88 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. FDX's industry had an average PEG ratio of 1.36 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 171, which puts it in the bottom 34% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
FedEx Corporation (FDX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research