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FedEx (FDX) Stock Declines While Market Improves: Some Information for Investors

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FedEx (FDX - Free Report) closed at $271.38 in the latest trading session, marking a -0.3% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.39%. On the other hand, the Dow registered a gain of 0.43%, and the technology-centric Nasdaq increased by 0.2%.

Shares of the package delivery company have appreciated by 10.64% over the course of the past month, outperforming the Transportation sector's gain of 7.8% and the S&P 500's gain of 5.28%.

The investment community will be closely monitoring the performance of FedEx in its forthcoming earnings report. The company is scheduled to release its earnings on December 19, 2023. The company is forecasted to report an EPS of $4.13, showcasing a 29.87% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $22.33 billion, down 2.13% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $18.19 per share and a revenue of $89.56 billion, indicating changes of +21.59% and -0.61%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for FedEx. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.28% upward. Right now, FedEx possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that FedEx has a Forward P/E ratio of 14.97 right now. For comparison, its industry has an average Forward P/E of 16.37, which means FedEx is trading at a discount to the group.

It's also important to note that FDX currently trades at a PEG ratio of 1.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. FDX's industry had an average PEG ratio of 1.78 as of yesterday's close.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 96, this industry ranks in the top 39% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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.

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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