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FedEx (FDX) Stock Dips While Market Gains: Key Facts

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The latest trading session saw FedEx (FDX - Free Report) ending at $256.12, denoting a -0.14% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.01%. On the other hand, the Dow registered a loss of 0.43%, and the technology-centric Nasdaq increased by 0.26%.

Prior to today's trading, shares of the package delivery company had lost 7.96% over the past month. This has lagged the Transportation sector's loss of 4.38% and the S&P 500's loss of 2.26% in that time.

Analysts and investors alike will be keeping a close eye on the performance of FedEx in its upcoming earnings disclosure. The company's earnings report is set to go public on March 20, 2025. In that report, analysts expect FedEx to post earnings of $4.59 per share. This would mark year-over-year growth of 18.91%. 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.

Any recent changes to analyst estimates for FedEx should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, FedEx holds a Zacks Rank of #3 (Hold).

With respect to valuation, FedEx is currently being traded at a Forward P/E ratio of 13.4. Its industry sports an average Forward P/E of 15.72, so one might conclude that FedEx is trading at a discount comparatively.

We can additionally observe that FDX currently boasts a PEG ratio of 1.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Transportation - Air Freight and Cargo industry stood at 1.38 at the close of the market yesterday.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 223, which puts it in the bottom 12% of all 250+ industries.

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

You can find more information on all of these metrics, and much more, on Zacks.com.


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