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Why FedEx (FDX) Dipped More Than Broader Market Today
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FedEx (FDX - Free Report) ended the recent trading session at $251.55, demonstrating a -0.62% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.07%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.36%.
The package delivery company's shares have seen a decrease of 0.18% over the last month, surpassing the Transportation sector's loss of 2.2% and falling behind the S&P 500's gain of 3.05%.
The upcoming earnings release of FedEx will be of great interest to investors. In that report, analysts expect FedEx to post earnings of $3.60 per share. This would mark year-over-year growth of 5.57%. Simultaneously, our latest consensus estimate expects the revenue to be $22.04 billion, showing a 0.58% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $17.76 per share and a revenue of $88.16 billion, indicating changes of +18.72% and -2.16%, respectively, from the former year.
Any recent changes to analyst estimates for FedEx should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.45% lower within the past month. FedEx is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, FedEx is holding a Forward P/E ratio of 14.25. This signifies a discount in comparison to the average Forward P/E of 15.62 for its industry.
One should further note that FDX currently holds a PEG ratio of 1.19. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.7 as trading concluded yesterday.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 242, putting it in the bottom 4% of all 250+ industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Why FedEx (FDX) Dipped More Than Broader Market Today
FedEx (FDX - Free Report) ended the recent trading session at $251.55, demonstrating a -0.62% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.07%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.36%.
The package delivery company's shares have seen a decrease of 0.18% over the last month, surpassing the Transportation sector's loss of 2.2% and falling behind the S&P 500's gain of 3.05%.
The upcoming earnings release of FedEx will be of great interest to investors. In that report, analysts expect FedEx to post earnings of $3.60 per share. This would mark year-over-year growth of 5.57%. Simultaneously, our latest consensus estimate expects the revenue to be $22.04 billion, showing a 0.58% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $17.76 per share and a revenue of $88.16 billion, indicating changes of +18.72% and -2.16%, respectively, from the former year.
Any recent changes to analyst estimates for FedEx should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.45% lower within the past month. FedEx is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, FedEx is holding a Forward P/E ratio of 14.25. This signifies a discount in comparison to the average Forward P/E of 15.62 for its industry.
One should further note that FDX currently holds a PEG ratio of 1.19. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.7 as trading concluded yesterday.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 242, putting it in the bottom 4% of all 250+ industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.