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FedEx (FDX) Stock Drops Despite Market Gains: Important Facts to Note

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FedEx (FDX - Free Report) closed the most recent trading day at $225.00, moving -1.19% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.21% for the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 0.45%.

The package delivery company's stock has dropped by 0.14% in the past month, falling short of the Transportation sector's gain of 2.21% and the S&P 500's gain of 3.07%.

Market participants will be closely following the financial results of FedEx in its upcoming release. The company plans to announce its earnings on September 18, 2025. On that day, FedEx is projected to report earnings of $3.7 per share, which would represent year-over-year growth of 2.78%. At the same time, our most recent consensus estimate is projecting a revenue of $21.76 billion, reflecting a 0.82% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $18.49 per share and a revenue of $89.38 billion, demonstrating changes of +1.65% and +1.79%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for FedEx. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0% higher. FedEx is currently a Zacks Rank #3 (Hold).

Looking at its valuation, FedEx is holding a Forward P/E ratio of 12.32. This valuation marks a discount compared to its industry average Forward P/E of 13.03.

It is also worth noting that FDX currently has a PEG ratio of 1.19. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Transportation - Air Freight and Cargo industry stood at 1.56 at the close of the market yesterday.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 196, this industry ranks in the bottom 21% of all industries, numbering over 250.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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