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FedEx (FDX) Gains But Lags Market: What You Should Know

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In the latest market close, FedEx (FDX - Free Report) reached $242.13, with a +0.34% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.82%. On the other hand, the Dow registered a gain of 0.41%, and the technology-centric Nasdaq increased by 0.95%.

Shares of the package delivery company have depreciated by 2.4% over the course of the past month, underperforming the Transportation sector's gain of 2.33% and the S&P 500's gain of 5.59%.

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 March 21, 2024. The company's upcoming EPS is projected at $3.60, signifying a 5.57% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $22.04 billion, indicating a 0.58% downward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.76 per share and revenue of $88.16 billion. These totals would mark changes of +18.72% and -2.16%, respectively, from last 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% decrease. Right now, FedEx possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, FedEx is currently exchanging hands at a Forward P/E ratio of 13.59. This signifies a discount in comparison to the average Forward P/E of 15.57 for its industry.

Meanwhile, FDX's PEG ratio is currently 1.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Transportation - Air Freight and Cargo industry stood at 1.76 at the close of the market yesterday.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 239, finds itself in the bottom 6% echelons 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.

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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