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

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FedEx (FDX - Free Report) closed at $186.63 in the latest trading session, marking a +1.41% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.11%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq gained 0.19%.

Coming into today, shares of the package delivery company had gained 3.45% in the past month. In that same time, the Transportation sector gained 5.14%, while the S&P 500 gained 4.42%.

Wall Street will be looking for positivity from FDX as it approaches its next earnings report date. In that report, analysts expect FDX to post earnings of $4.91 per share. This would mark a year-over-year decline of 16.92%. Our most recent consensus estimate is calling for quarterly revenue of $17.96 billion, up 3.75% from the year-ago period.

FDX's full-year Zacks Consensus Estimates are calling for earnings of $15.44 per share and revenue of $69.82 billion. These results would represent year-over-year changes of +0.85% and +6.68%, respectively.

It is also important to note the recent changes to analyst estimates for FDX. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.54% lower. FDX is currently a Zacks Rank #4 (Sell).

In terms of valuation, FDX is currently trading at a Forward P/E ratio of 11.92. Its industry sports an average Forward P/E of 12.9, so we one might conclude that FDX is trading at a discount comparatively.

Investors should also note that FDX has a PEG ratio of 0.93 right now. 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 was holding an average PEG ratio of 1.24 at yesterday's closing price.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% 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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