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

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FedEx (FDX - Free Report) closed the most recent trading day at $197.01, moving -0.87% from the previous trading session. This move lagged the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.11%.

Heading into today, shares of the package delivery company had lost 10.17% over the past month, outpacing the Transportation sector's loss of 12.42% and the S&P 500's loss of 10.81% in that time.

FedEx will be looking to display strength as it nears its next earnings release. On that day, FedEx is projected to report earnings of $6.80 per share, which would represent year-over-year growth of 35.73%. Our most recent consensus estimate is calling for quarterly revenue of $24.28 billion, up 7.6% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $20.56 per share and revenue of $93.4 billion, which would represent changes of +13.15% and +11.24%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for FedEx. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. FedEx is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note FedEx's current valuation metrics, including its Forward P/E ratio of 9.67. This valuation marks a discount compared to its industry's average Forward P/E of 14.03.

We can also see that FDX currently has a PEG ratio of 0.81. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.57 based on yesterday's closing prices.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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