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FedEx (FDX) Stock Moves -0.48%: What You Should Know

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FedEx (FDX - Free Report) closed at $174.76 in the latest trading session, marking a -0.48% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.89%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.25%.

Coming into today, shares of the package delivery company had gained 11.88% in the past month. In that same time, the Transportation sector gained 14.32%, while the S&P 500 gained 11.42%.

FedEx will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.78, down 42.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.56 billion, up 0.38% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $14.34 per share and revenue of $95.98 billion, which would represent changes of -30.42% and +2.64%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for FedEx. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 1.35% lower. FedEx is currently sporting a Zacks Rank of #5 (Strong Sell).

In terms of valuation, FedEx is currently trading at a Forward P/E ratio of 12.25. For comparison, its industry has an average Forward P/E of 13, which means FedEx is trading at a discount to the group.

Investors should also note that FDX has a PEG ratio of 1.02 right now. 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 industry currently had an average PEG ratio of 1.35 as of yesterday's close.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 224, which puts it in the bottom 12% 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.

To follow FDX in the coming trading sessions, be sure to utilize Zacks.com.


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