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FedEx (FDX) Dips More Than Broader Markets: What You Should Know

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FedEx (FDX - Free Report) closed the most recent trading day at $152.33, moving -1.26% from the previous trading session. This move lagged the S&P 500's daily loss of 0.28%. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq lost 1.61%.

Heading into today, shares of the package delivery company had lost 15.52% over the past month, lagging the Transportation sector's loss of 8.78% and the S&P 500's loss of 6.3% 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 June 25, 2019. The company is expected to report EPS of $4.89, down 17.26% from the prior-year quarter. 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 $15.42 per share and revenue of $69.83 billion. These totals would mark changes of +0.72% and +6.69%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for FDX. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. FDX currently has a Zacks Rank of #4 (Sell).

Investors should also note FDX's current valuation metrics, including its Forward P/E ratio of 10. This represents a discount compared to its industry's average Forward P/E of 12.71.

We can also see that FDX currently has a PEG ratio of 0.78. 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. 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 179, putting it in the bottom 31% 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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