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Here's Why FedEx (FDX) Fell More Than Broader Market
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FedEx (FDX - Free Report) closed at $253.60 in the latest trading session, marking a -1.56% move from the prior day. This change lagged the S&P 500's 0.2% loss on the day. Meanwhile, the Dow experienced a drop of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.07%.
The the stock of package delivery company has risen by 12.57% in the past month, leading the Transportation sector's gain of 7.68% and the S&P 500's gain of 7.49%.
The investment community will be paying close attention to the earnings performance of FedEx in its upcoming release. The company is slated to reveal its earnings on December 19, 2023. On that day, FedEx is projected to report earnings of $4.07 per share, which would represent year-over-year growth of 27.99%. In the meantime, our current consensus estimate forecasts the revenue to be $22.36 billion, indicating a 2% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $18.14 per share and revenue of $89.76 billion, which would represent changes of +21.26% and -0.39%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for FedEx. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FedEx presently features a Zacks Rank of #2 (Buy).
Investors should also note FedEx's current valuation metrics, including its Forward P/E ratio of 14.2. This valuation marks a discount compared to its industry's average Forward P/E of 15.73.
One should further note that FDX currently holds a PEG ratio of 1.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Transportation - Air Freight and Cargo industry stood at 1.73 at the close of the market yesterday.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 35, positioning it in the top 14% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Here's Why FedEx (FDX) Fell More Than Broader Market
FedEx (FDX - Free Report) closed at $253.60 in the latest trading session, marking a -1.56% move from the prior day. This change lagged the S&P 500's 0.2% loss on the day. Meanwhile, the Dow experienced a drop of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.07%.
The the stock of package delivery company has risen by 12.57% in the past month, leading the Transportation sector's gain of 7.68% and the S&P 500's gain of 7.49%.
The investment community will be paying close attention to the earnings performance of FedEx in its upcoming release. The company is slated to reveal its earnings on December 19, 2023. On that day, FedEx is projected to report earnings of $4.07 per share, which would represent year-over-year growth of 27.99%. In the meantime, our current consensus estimate forecasts the revenue to be $22.36 billion, indicating a 2% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $18.14 per share and revenue of $89.76 billion, which would represent changes of +21.26% and -0.39%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for FedEx. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FedEx presently features a Zacks Rank of #2 (Buy).
Investors should also note FedEx's current valuation metrics, including its Forward P/E ratio of 14.2. This valuation marks a discount compared to its industry's average Forward P/E of 15.73.
One should further note that FDX currently holds a PEG ratio of 1.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Transportation - Air Freight and Cargo industry stood at 1.73 at the close of the market yesterday.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 35, positioning it in the top 14% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.