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

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In the latest trading session, FedEx (FDX - Free Report) closed at $309.43, marking a +1.99% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.49%.

Coming into today, shares of the package delivery company had gained 4.19% in the past month. In that same time, the Transportation sector gained 4.47%, while the S&P 500 lost 0.62%.

Wall Street will be looking for positivity from FDX as it approaches its next earnings report date. On that day, FDX is projected to report earnings of $4.77 per share, which would represent year-over-year growth of 88.54%. Our most recent consensus estimate is calling for quarterly revenue of $21.09 billion, up 21.47% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.96 per share and revenue of $82.39 billion. These totals would mark changes of +89.05% and +19.03%, respectively, from last year.

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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. FDX is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, FDX is currently trading at a Forward P/E ratio of 16.9. This valuation marks a premium compared to its industry's average Forward P/E of 16.26.

Investors should also note that FDX has a PEG ratio of 1.41 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 industry currently had an average PEG ratio of 1.91 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 85, putting it in the top 34% 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.

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