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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 $210.13, marking a +0.5% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.07%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 1.47%.

Heading into today, shares of the package delivery company had lost 2.6% over the past month, lagging the Transportation sector's gain of 0.23% and the S&P 500's loss of 2% in that time.

Investors will be hoping for strength from FedEx as it approaches its next earnings release, which is expected to be March 16, 2023. In that report, analysts expect FedEx to post earnings of $2.66 per share. This would mark a year-over-year decline of 42.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.63 billion, down 4.29% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $13.51 per share and revenue of $91.78 billion, which would represent changes of -34.45% and -1.85%, respectively, from the prior year.

Any recent changes to analyst estimates for FedEx should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 has moved 0.67% lower. FedEx is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that FedEx has a Forward P/E ratio of 15.48 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 15.48.

We can also see that FDX currently has a PEG ratio of 1.29. 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 1.79 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 230, which puts it in the bottom 9% 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.

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


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