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

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FedEx (FDX - Free Report) closed at $233.21 in the latest trading session, marking a +1.1% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq lost 0.46%.

Heading into today, shares of the package delivery company had gained 5.9% over the past month, lagging the Transportation sector's gain of 15.23% and the S&P 500's gain of 12.15% in that time.

FedEx will be looking to display strength as it nears its next earnings release, which is expected to be September 22, 2022. The company is expected to report EPS of $5.08, up 16.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.63 billion, up 7.41% from the year-ago period.

FDX's full-year Zacks Consensus Estimates are calling for earnings of $23.16 per share and revenue of $98.91 billion. These results would represent year-over-year changes of +12.37% and +5.77%, respectively.

Any recent changes to analyst estimates for FedEx should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FedEx is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note FedEx's current valuation metrics, including its Forward P/E ratio of 9.96. This valuation marks a discount compared to its industry's average Forward P/E of 15.11.

We can also see that FDX currently has a PEG ratio of 0.83. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Transportation - Air Freight and Cargo industry currently had an average PEG ratio of 1.47 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 43, putting it in the top 18% 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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