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FedEx (FDX) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest trading session, FedEx (FDX - Free Report) closed at $217.10, marking a -2.86% move from the previous day. This change lagged the S&P 500's daily loss of 1.6%. Elsewhere, the Dow saw a downswing of 1.23%, while the tech-heavy Nasdaq depreciated by 2.24%.

Prior to today's trading, shares of the package delivery company had lost 7.35% lagged the Transportation sector's loss of 1.08% and the S&P 500's gain of 2.25%.

Investors will be eagerly watching for the performance of FedEx in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.71, signifying a 3.06% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $21.76 billion, up 0.84% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $18.49 per share and revenue of $89.35 billion, indicating changes of +1.65% and +1.62%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for FedEx. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.3% rise in the Zacks Consensus EPS estimate. At present, FedEx boasts a Zacks Rank of #3 (Hold).

Looking at its valuation, FedEx is holding a Forward P/E ratio of 12.09. This indicates a discount in contrast to its industry's Forward P/E of 13.04.

Also, we should mention that FDX has a PEG ratio of 1.16. 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 was holding an average PEG ratio of 1.56 at yesterday's closing price.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 193, placing it within the bottom 22% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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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