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FedEx (FDX) Gains But Lags Market: What You Should Know

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FedEx (FDX - Free Report) closed at $229 in the latest trading session, marking a +0.66% move from the prior day. This change lagged the S&P 500's 0.82% gain on the day. Meanwhile, the Dow gained 0.79%, and the Nasdaq, a tech-heavy index, added 0.79%.

Coming into today, shares of the package delivery company had gained 1.54% in the past month. In that same time, the Transportation sector gained 7.48%, while the S&P 500 gained 3.94%.

FDX will be looking to display strength as it nears its next earnings release, which is expected to be December 18, 2018. The company is expected to report EPS of $3.74, up 17.61% from the prior-year quarter. 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. FDX currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, FDX is holding a Forward P/E ratio of 13.12. This represents a discount compared to its industry's average Forward P/E of 14.61.

We can also see that FDX currently has a PEG ratio of 1.03. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Transportation - Air Freight and Cargo industry currently had an average PEG ratio of 1.26 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 209, putting it in the bottom 19% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.




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