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FedEx (FDX) Outpaces Stock Market Gains: What You Should Know

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FedEx (FDX - Free Report) closed the latest trading day at $250.95, indicating a +1.46% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.72%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.35%.

Coming into today, shares of the package delivery company had lost 9.72% in the past month. In that same time, the Transportation sector gained 3%, while the S&P 500 gained 1.02%.

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 March 20, 2025. The company is forecasted to report an EPS of $4.59, showcasing a 18.91% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.89 billion, up 0.89% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.14 per share and revenue of $87.6 billion. These totals would mark changes of +7.53% and -0.06%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for FedEx. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.29% upward. As of now, FedEx holds a Zacks Rank of #3 (Hold).

In terms of valuation, FedEx is currently trading at a Forward P/E ratio of 12.92. For comparison, its industry has an average Forward P/E of 13.99, which means FedEx is trading at a discount to the group.

One should further note that FDX currently holds a PEG ratio of 1.02. 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. By the end of yesterday's trading, the Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.2.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 233, which puts it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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