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FedEx (FDX) Rises Higher Than Market: Key Facts

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FedEx (FDX - Free Report) ended the recent trading session at $289.79, demonstrating a +1.23% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.1%. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 0.06%.

Coming into today, shares of the package delivery company had gained 8.29% in the past month. In that same time, the Transportation sector gained 4.67%, while the S&P 500 gained 4.37%.

The investment community will be paying close attention to the earnings performance of FedEx in its upcoming release. The company is slated to reveal its earnings on December 19, 2024. The company's upcoming EPS is projected at $3.88, signifying a 2.76% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $22.19 billion, indicating a 0.13% growth compared to the corresponding quarter of the prior year.

FDX's full-year Zacks Consensus Estimates are calling for earnings of $19.60 per share and revenue of $88.7 billion. These results would represent year-over-year changes of +10.11% and +1.19%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for FedEx. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. FedEx currently has a Zacks Rank of #5 (Strong Sell).

Looking at valuation, FedEx is presently trading at a Forward P/E ratio of 14.61. This indicates a discount in contrast to its industry's Forward P/E of 19.64.

It's also important to note that FDX currently trades at a PEG ratio of 1.15. 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. FDX's industry had an average PEG ratio of 1.8 as of yesterday's close.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 179, finds itself in the bottom 29% echelons of all 250+ industries.

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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