In the latest trading session, FedEx (FDX - Free Report) closed at $171.86, marking a -0.26% move from the previous day. This change lagged the S&P 500's 0.8% gain on the day. At the same time, the Dow added 0.82%, and the tech-heavy Nasdaq gained 1.14%.
Coming into today, shares of the package delivery company had lost 12.17% in the past month. In that same time, the Transportation sector lost 5.07%, while the S&P 500 lost 3.2%.
Wall Street will be looking for positivity from FDX as it approaches its next earnings report date. On that day, FDX is projected to report earnings of $4.91 per share, which would represent a year-over-year decline of 16.92%. Meanwhile, our latest consensus estimate is calling for revenue of $17.96 billion, up 3.75% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.44 per share and revenue of $69.82 billion. These totals would mark changes of +0.85% and +6.68%, respectively, from last year.
Any recent changes to analyst estimates for FDX should also be noted by investors. These revisions help to show the ever-changing nature of near-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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.3% lower. FDX is currently a Zacks Rank #4 (Sell).
In terms of valuation, FDX is currently trading at a Forward P/E ratio of 11.16. This valuation marks a discount compared to its industry's average Forward P/E of 12.11.
We can also see that FDX currently has a PEG ratio of 0.88. 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 1.21 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 186, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.