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FedEx (FDX) Gains As Market Dips: What You Should Know

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In the latest trading session, FedEx (FDX - Free Report) closed at $232.98, marking a +0.06% move from the previous day. This change outpaced the S&P 500's 0.11% loss on the day.

Coming into today, shares of the package delivery company had gained 1.71% in the past month. In that same time, the Transportation sector gained 5.53%, while the S&P 500 gained 4.61%.

FDX will be looking to display strength as it nears its next earnings release. In that report, analysts expect FDX to post earnings of $4.33 per share. This would mark a year-over-year decline of 10.35%. Our most recent consensus estimate is calling for quarterly revenue of $22.53 billion, up 9.55% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $19.50 per share and revenue of $90.51 billion, which would represent changes of +7.32% and +7.8%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for FDX. These revisions help to show the ever-changing nature of near-term business trends. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.36% lower. FDX currently has a Zacks Rank of #4 (Sell).

In terms of valuation, FDX is currently trading at a Forward P/E ratio of 11.94. This represents a discount compared to its industry's average Forward P/E of 14.85.

Investors should also note that FDX has a PEG ratio of 1 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 industry currently had an average PEG ratio of 1.53 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 226, putting it in the bottom 12% 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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