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FedEx (FDX) Gains But Lags Market: What You Should Know

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FedEx (FDX - Free Report) closed the most recent trading day at $240.57, moving +1.02% from the previous trading session. This change lagged the S&P 500's 1.32% gain on the day. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, lost 0.15%.

Prior to today's trading, shares of the package delivery company had gained 1.11% over the past month. This has outpaced the Transportation sector's loss of 2.97% and lagged the S&P 500's gain of 3.61% in that time.

Investors will be hoping for strength from FedEx as it approaches its next earnings release, which is expected to be December 16, 2021. In that report, analysts expect FedEx to post earnings of $4.24 per share. This would mark a year-over-year decline of 12.22%. Meanwhile, our latest consensus estimate is calling for revenue of $22.53 billion, up 9.55% from the prior-year quarter.

FDX's full-year Zacks Consensus Estimates are calling for earnings of $19.47 per share and revenue of $90.51 billion. These results would represent year-over-year changes of +7.15% and +7.8%, respectively.

Investors should also note any recent changes to analyst estimates for FedEx. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% lower. FedEx is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, FedEx currently has a Forward P/E ratio of 12.23. This represents a discount compared to its industry's average Forward P/E of 16.85.

It is also worth noting that FDX currently has a PEG ratio of 1.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.49 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 83, which puts it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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