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

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FedEx (FDX - Free Report) closed at $224.04 in the latest trading session, marking a +1.68% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.65%. Meanwhile, the Dow gained 0.79%, and the Nasdaq, a tech-heavy index, added 1.01%.

Coming into today, shares of the package delivery company had lost 8.55% in the past month. In that same time, the Transportation sector lost 9.57%, while the S&P 500 lost 6.82%.

Investors will be hoping for strength from FDX as it approaches its next earnings release, which is expected to be December 18, 2018. In that report, analysts expect FDX to post earnings of $4.02 per share. This would mark year-over-year growth of 26.42%. Meanwhile, our latest consensus estimate is calling for revenue of $17.76 billion, up 8.85% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.34 per share and revenue of $71.26 billion. These totals would mark changes of +13.26% and +8.87%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for FDX. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. FDX is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, FDX is currently trading at a Forward P/E ratio of 12.71. This represents a discount compared to its industry's average Forward P/E of 14.71.

Meanwhile, FDX's PEG ratio is currently 1. 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. FDX's industry had an average PEG ratio of 1 as of yesterday's close.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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