Back to top

Image: Bigstock

FedEx (FDX) Beats Stock Market Upswing: What Investors Need to Know

Read MoreHide Full Article

FedEx (FDX - Free Report) closed the most recent trading day at $228.05, moving +1.51% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.78%. Elsewhere, the Dow saw an upswing of 0.47%, while the tech-heavy Nasdaq appreciated by 0.98%.

The stock of package delivery company has fallen by 5.89% in the past month, lagging the Transportation sector's loss of 2.05% and the S&P 500's gain of 1.86%.

The upcoming earnings release of FedEx will be of great interest to investors. The company is predicted to post an EPS of $3.71, indicating a 3.06% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $21.76 billion, showing a 0.84% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $18.49 per share and a revenue of $89.4 billion, demonstrating changes of +1.65% and +1.68%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for FedEx. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.3% upward. Currently, FedEx is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, FedEx is currently trading at a Forward P/E ratio of 12.15. For comparison, its industry has an average Forward P/E of 13.15, which means FedEx is trading at a discount to the group.

We can also see that FDX currently has a PEG ratio of 1.17. 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. As of the close of trade yesterday, the Transportation - Air Freight and Cargo industry held an average PEG ratio of 1.57.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 201, positioning it in the bottom 19% 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.

To follow FDX in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


FedEx Corporation (FDX) - free report >>

Published in