In the latest trading session, FedEx (FDX - Free Report) closed at $170.08, marking a -0.3% move from the previous day. This change lagged the S&P 500's daily gain of 0.45%. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq added 0.42%.
Coming into today, shares of the package delivery company had lost 9.39% in the past month. In that same time, the Transportation sector lost 4.02%, while the S&P 500 lost 1.64%.
Investors will be hoping for strength from FDX as it approaches its next earnings release, which is expected to be March 19, 2019. On that day, FDX is projected to report earnings of $3.11 per share, which would represent a year-over-year decline of 16.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.68 billion, up 7.01% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.91 per share and revenue of $70.92 billion, which would represent changes of +3.92% and +8.35%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for FDX. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 8.17% lower. FDX currently has a Zacks Rank of #4 (Sell).
In terms of valuation, FDX is currently trading at a Forward P/E ratio of 10.72. Its industry sports an average Forward P/E of 10.46, so we one might conclude that FDX is trading at a premium comparatively.
Investors should also note that FDX has a PEG ratio of 0.84 right now. 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 1.11 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 236, putting it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow FDX in the coming trading sessions, be sure to utilize Zacks.com.