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FedEx (FDX) Stock Sinks As Market Gains: What You Should Know
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FedEx (FDX - Free Report) closed at $226.33 in the latest trading session, marking a -1.01% move from the prior day. This change lagged the S&P 500's 0.45% gain on the day. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq gained 35%.
Coming into today, shares of the package delivery company had lost 1.25% in the past month. In that same time, the Transportation sector gained 0.41%, while the S&P 500 gained 0.44%.
Investors will be hoping for strength from FedEx as it approaches its next earnings release, which is expected to be June 20, 2023. In that report, analysts expect FedEx to post earnings of $4.78 per share. This would mark a year-over-year decline of 30.42%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.97 billion, down 5.85% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.80 per share and revenue of $91.4 billion. These totals would mark changes of -28.19% and -2.26%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for FedEx. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. FedEx is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, FedEx is holding a Forward P/E ratio of 15.45. Its industry sports an average Forward P/E of 15.72, so we one might conclude that FedEx is trading at a discount comparatively.
Investors should also note that FDX has a PEG ratio of 1.29 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.6 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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FedEx (FDX) Stock Sinks As Market Gains: What You Should Know
FedEx (FDX - Free Report) closed at $226.33 in the latest trading session, marking a -1.01% move from the prior day. This change lagged the S&P 500's 0.45% gain on the day. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq gained 35%.
Coming into today, shares of the package delivery company had lost 1.25% in the past month. In that same time, the Transportation sector gained 0.41%, while the S&P 500 gained 0.44%.
Investors will be hoping for strength from FedEx as it approaches its next earnings release, which is expected to be June 20, 2023. In that report, analysts expect FedEx to post earnings of $4.78 per share. This would mark a year-over-year decline of 30.42%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.97 billion, down 5.85% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.80 per share and revenue of $91.4 billion. These totals would mark changes of -28.19% and -2.26%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for FedEx. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. FedEx is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, FedEx is holding a Forward P/E ratio of 15.45. Its industry sports an average Forward P/E of 15.72, so we one might conclude that FedEx is trading at a discount comparatively.
Investors should also note that FDX has a PEG ratio of 1.29 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.6 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.