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FedEx (FDX) Surges 4.3%: Is This an Indication of Further Gains?

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FedEx (FDX - Free Report) shares rallied 4.3% in the last trading session to close at $287.51. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.2% loss over the past four weeks.

The FedEx stock gained in response to the uptick in shares of rival United Parcel Service (UPS - Free Report) following the latter's blowout first-quarter 2021 earnings report. Notably, UPS reporting better-than-expected earnings per share and revenues aided by the 14.3% increase in consolidated average daily volumes.

Price and Consensus

Price Consensus Chart for FDX

This package delivery company is expected to post quarterly earnings of $4.77 per share in its upcoming report, which represents a year-over-year change of +88.5%. Revenues are expected to be $21.09 billion, up 21.5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For FedEx, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on FDX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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