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Here's Why FedEx (FDX) Gained But Lagged the Market Today
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The most recent trading session ended with FedEx (FDX - Free Report) standing at $254.22, reflecting a +0.6% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 1.12%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 1.54%.
Shares of the package delivery company witnessed a gain of 3.38% over the previous month, beating the performance of the Transportation sector with its gain of 1.66% and the S&P 500's gain of 2.06%.
The upcoming earnings release of FedEx will be of great interest to investors. The company's earnings report is expected on March 21, 2024. On that day, FedEx is projected to report earnings of $3.55 per share, which would represent year-over-year growth of 4.11%. Simultaneously, our latest consensus estimate expects the revenue to be $22.02 billion, showing a 0.68% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $17.63 per share and a revenue of $88.18 billion, indicating changes of +17.85% and -2.14%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for FedEx. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 0.73% lower within the past month. Right now, FedEx possesses a Zacks Rank of #4 (Sell).
In the context of valuation, FedEx is at present trading with a Forward P/E ratio of 14.33. This represents a discount compared to its industry's average Forward P/E of 16.01.
Also, we should mention that FDX has a PEG ratio of 1.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.96 as trading concluded yesterday.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 238, this industry ranks in the bottom 6% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Here's Why FedEx (FDX) Gained But Lagged the Market Today
The most recent trading session ended with FedEx (FDX - Free Report) standing at $254.22, reflecting a +0.6% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 1.12%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 1.54%.
Shares of the package delivery company witnessed a gain of 3.38% over the previous month, beating the performance of the Transportation sector with its gain of 1.66% and the S&P 500's gain of 2.06%.
The upcoming earnings release of FedEx will be of great interest to investors. The company's earnings report is expected on March 21, 2024. On that day, FedEx is projected to report earnings of $3.55 per share, which would represent year-over-year growth of 4.11%. Simultaneously, our latest consensus estimate expects the revenue to be $22.02 billion, showing a 0.68% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $17.63 per share and a revenue of $88.18 billion, indicating changes of +17.85% and -2.14%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for FedEx. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 0.73% lower within the past month. Right now, FedEx possesses a Zacks Rank of #4 (Sell).
In the context of valuation, FedEx is at present trading with a Forward P/E ratio of 14.33. This represents a discount compared to its industry's average Forward P/E of 16.01.
Also, we should mention that FDX has a PEG ratio of 1.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.96 as trading concluded yesterday.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 238, this industry ranks in the bottom 6% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.