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FedEx (FDX) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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FedEx (FDX - Free Report) closed the latest trading day at $241.12, indicating a -0.96% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq lost 0.13%.

Coming into today, shares of the package delivery company had lost 3.22% in the past month. In that same time, the Transportation sector gained 3.94%, while the S&P 500 gained 4.74%.

Investors will be eagerly watching for the performance of FedEx in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on March 21, 2024. On that day, FedEx is projected to report earnings of $3.56 per share, which would represent year-over-year growth of 4.4%. Meanwhile, the latest consensus estimate predicts the revenue to be $22.04 billion, indicating a 0.58% decrease compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $17.72 per share and a revenue of $88.16 billion, representing changes of +18.45% and -2.16%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for FedEx. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% lower. FedEx currently has a Zacks Rank of #4 (Sell).

Investors should also note FedEx's current valuation metrics, including its Forward P/E ratio of 13.74. This expresses a discount compared to the average Forward P/E of 15.82 of its industry.

We can additionally observe that FDX currently boasts a PEG ratio of 1.15. 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 average PEG ratio for the Transportation - Air Freight and Cargo industry stood at 1.79 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 217, finds itself in the bottom 14% 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.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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