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Why FedEx (FDX) Could Be a Top Value Stock Pick

Zacks Equity Research
·2 min read

Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; FedEx Corp. FDX.

FedEx in Focus

FDX may be an interesting play thanks to its forward PE of 16.7, its P/S ratio of 0.9, and its decent dividend yield of 1.0%. These factors suggest that FedEx is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that FDX has decent revenue metrics to back up its earnings.

FedEx Corporation PE Ratio (TTM)

FedEx Corporation PE Ratio (TTM)
FedEx Corporation PE Ratio (TTM)

FedEx Corporation pe-ratio-ttm | FedEx Corporation Quote

But before you think that FedEx is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 45.2% in the past 30 days, thanks to 11 upward revisions in the past one month compared to none lower.

This estimate strength is actually enough to push FDX to a Zacks Rank #1 (Strong Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank stocks here.

So really, FedEx is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

Zacks’ Single Best Pick to Double

From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.

The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.

Click Here, See It Free >>


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FedEx Corporation (FDX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research