In the latest trading session, FedEx (FDX - Free Report) closed at $182.28, marking a +0.2% move from the previous day. This change outpaced the S&P 500's 0.35% loss on the day. Elsewhere, the Dow lost 0.4%, while the tech-heavy Nasdaq lost 0.39%.
Heading into today, shares of the package delivery company had gained 4.74% over the past month, lagging the Transportation sector's gain of 7.68% and outpacing the S&P 500's gain of 4.48% in that time.
Wall Street will be looking for positivity from FDX as it approaches its next earnings report date. This is expected to be March 19, 2019. The company is expected to report EPS of $3.10, down 16.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $17.68 billion, up 7.01% from the prior-year quarter.
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 should also note any 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. FDX currently has a Zacks Rank of #3 (Hold).
Digging into valuation, FDX currently has a Forward P/E ratio of 11.43. For comparison, its industry has an average Forward P/E of 12.1, which means FDX is trading at a discount to the group.
It is also worth noting that FDX currently has a PEG ratio of 0.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. FDX's industry had an average PEG ratio of 1.28 as of yesterday's close.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.