We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Investors Should Add FedEx (FDX) to Portfolio Now
Read MoreHide Full Article
FedEx Corporation (FDX - Free Report) performed well in the past year and has the potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
An Outperformer: A glimpse at the company’s price trend reveals that its shares have surged 42.6% in the past year compared with a 3.5% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: FedEx currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Three estimates for fiscal 2024 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2023 earnings has moved up marginally in the past 60 days.
Positive Earnings Surprise History: FedEx has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 16.9%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for fiscal 2024 earnings is expected to be at $18.14, which reflects year-over-year growth of 21.3%. Moreover, earnings are expected to register 21% growth in fiscal 2025. The company’s long-term expected earnings per share (EPS) growth rate is at 12%.
Driving Factors: Driven by its cost-saving plan, which is expected to accelerate in the fiscal 2024, FDX now expects earnings per share (excluding costs related to business optimization initiatives) for fiscal 2024 in the range of $17 to $18.50 (prior view: $16.50 to $18.50). DRIVE initiatives are likely to result in $1.8 billion in cost savings in fiscal 2024.
FedEx's liquidity position is solid. The company's current ratio, a measure of liquidity, was pegged at 1.37 at the end of the first quarter of fiscal 2024. A current ratio of more than 1 indicates that the company's assets will be able to cover its debts that are due at the end of the year.
Air Canada currently sports a Zacks Rank #1 (Strong Buy). An uptick in passenger traffic is aiding ACDVF. Recently, management announced plans to launch a new year-round route between Montreal and Madrid.
The service will commence in May of the following year as part of its expanded international summer 2024 flying schedule to cater to increased demand.
SkyWest currently carries a Zacks Rank #2 (Buy). SKYW's fleet modernization efforts are commendable. Initiatives to reward its shareholders also bode well. The Zacks Consensus Estimate for current-quarter earnings has surged 83.3% in the past 60 days.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Here's Why Investors Should Add FedEx (FDX) to Portfolio Now
FedEx Corporation (FDX - Free Report) performed well in the past year and has the potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
An Outperformer: A glimpse at the company’s price trend reveals that its shares have surged 42.6% in the past year compared with a 3.5% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: FedEx currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Three estimates for fiscal 2024 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2023 earnings has moved up marginally in the past 60 days.
Positive Earnings Surprise History: FedEx has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 16.9%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for fiscal 2024 earnings is expected to be at $18.14, which reflects year-over-year growth of 21.3%. Moreover, earnings are expected to register 21% growth in fiscal 2025. The company’s long-term expected earnings per share (EPS) growth rate is at 12%.
Driving Factors: Driven by its cost-saving plan, which is expected to accelerate in the fiscal 2024, FDX now expects earnings per share (excluding costs related to business optimization initiatives) for fiscal 2024 in the range of $17 to $18.50 (prior view: $16.50 to $18.50). DRIVE initiatives are likely to result in $1.8 billion in cost savings in fiscal 2024.
FedEx's liquidity position is solid. The company's current ratio, a measure of liquidity, was pegged at 1.37 at the end of the first quarter of fiscal 2024. A current ratio of more than 1 indicates that the company's assets will be able to cover its debts that are due at the end of the year.
Key Picks
Some better-ranked stocks for investors interested in the Zacks Transportation sector are Air Canada (ACDVF - Free Report) and SkyWest (SKYW - Free Report) .
Air Canada currently sports a Zacks Rank #1 (Strong Buy). An uptick in passenger traffic is aiding ACDVF. Recently, management announced plans to launch a new year-round route between Montreal and Madrid.
The service will commence in May of the following year as part of its expanded international summer 2024 flying schedule to cater to increased demand.
SkyWest currently carries a Zacks Rank #2 (Buy). SKYW's fleet modernization efforts are commendable. Initiatives to reward its shareholders also bode well. The Zacks Consensus Estimate for current-quarter earnings has surged 83.3% in the past 60 days.