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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 $227.78, moving +0.81% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.83%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 4.46%.
Heading into today, shares of the package delivery company had gained 0.69% over the past month, outpacing the Transportation sector's loss of 0.62% and lagging the S&P 500's gain of 4.04% in that time.
FedEx will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.78, down 30.42% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.97 billion, down 5.85% from the year-ago period.
FDX's full-year Zacks Consensus Estimates are calling for earnings of $14.81 per share and revenue of $91.4 billion. These results would represent year-over-year changes of -28.14% and -2.26%, respectively.
Investors should also note any recent changes to analyst estimates for FedEx. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. FedEx currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, FedEx is currently trading at a Forward P/E ratio of 15.26. Its industry sports an average Forward P/E of 15.73, so we one might conclude that FedEx is trading at a discount comparatively.
Meanwhile, FDX's PEG ratio is currently 1.27. 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 was holding an average PEG ratio of 1.62 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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FedEx (FDX) Gains But Lags Market: What You Should Know
FedEx (FDX - Free Report) closed the most recent trading day at $227.78, moving +0.81% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.83%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 4.46%.
Heading into today, shares of the package delivery company had gained 0.69% over the past month, outpacing the Transportation sector's loss of 0.62% and lagging the S&P 500's gain of 4.04% in that time.
FedEx will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.78, down 30.42% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.97 billion, down 5.85% from the year-ago period.
FDX's full-year Zacks Consensus Estimates are calling for earnings of $14.81 per share and revenue of $91.4 billion. These results would represent year-over-year changes of -28.14% and -2.26%, respectively.
Investors should also note any recent changes to analyst estimates for FedEx. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. FedEx currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, FedEx is currently trading at a Forward P/E ratio of 15.26. Its industry sports an average Forward P/E of 15.73, so we one might conclude that FedEx is trading at a discount comparatively.
Meanwhile, FDX's PEG ratio is currently 1.27. 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 was holding an average PEG ratio of 1.62 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.