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FedEx (FDX) Increases Yet Falls Behind Market: What Investors Need to Know
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In the latest market close, FedEx (FDX - Free Report) reached $247.25, with a +1.65% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.89%. Meanwhile, the Dow experienced a rise of 1.7%, and the technology-dominated Nasdaq saw an increase of 1.78%.
The package delivery company's stock has dropped by 4.6% in the past month, falling short of the Transportation sector's loss of 2.82% and the S&P 500's gain of 0.8%.
Market participants will be closely following the financial results of FedEx in its upcoming release. In that report, analysts expect FedEx to post earnings of $4.07 per share. This would mark year-over-year growth of 27.99%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.36 billion, down 2% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $18.14 per share and a revenue of $89.76 billion, representing changes of +21.26% and -0.39%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for FedEx. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. At present, FedEx boasts a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that FedEx has a Forward P/E ratio of 13.63 right now. Its industry sports an average Forward P/E of 14.56, so one might conclude that FedEx is trading at a discount comparatively.
One should further note that FDX currently holds a PEG ratio of 1.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.57 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 22, positioning it in the top 9% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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 Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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FedEx (FDX) Increases Yet Falls Behind Market: What Investors Need to Know
In the latest market close, FedEx (FDX - Free Report) reached $247.25, with a +1.65% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.89%. Meanwhile, the Dow experienced a rise of 1.7%, and the technology-dominated Nasdaq saw an increase of 1.78%.
The package delivery company's stock has dropped by 4.6% in the past month, falling short of the Transportation sector's loss of 2.82% and the S&P 500's gain of 0.8%.
Market participants will be closely following the financial results of FedEx in its upcoming release. In that report, analysts expect FedEx to post earnings of $4.07 per share. This would mark year-over-year growth of 27.99%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.36 billion, down 2% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $18.14 per share and a revenue of $89.76 billion, representing changes of +21.26% and -0.39%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for FedEx. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. At present, FedEx boasts a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that FedEx has a Forward P/E ratio of 13.63 right now. Its industry sports an average Forward P/E of 14.56, so one might conclude that FedEx is trading at a discount comparatively.
One should further note that FDX currently holds a PEG ratio of 1.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.57 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 22, positioning it in the top 9% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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 Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.