FedEx (FDX - Free Report) closed the most recent trading day at $161.84, moving +2.42% from the previous trading session. This change outpaced the S&P 500's 0.47% gain on the day. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.05%.
Coming into today, shares of the package delivery company had lost 12% in the past month. In that same time, the Transportation sector lost 2.72%, while the S&P 500 lost 0.08%.
Investors will be hoping for strength from FDX as it approaches its next earnings release, which is expected to be June 25, 2019. On that day, FDX is projected to report earnings of $4.89 per share, which would represent a year-over-year decline of 17.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.96 billion, up 3.75% from the year-ago period.
It is also important to note the recent changes to analyst estimates for FDX. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 has moved 0.81% lower within the past month. FDX is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, FDX currently has a Forward P/E ratio of 9.64. For comparison, its industry has an average Forward P/E of 12.92, which means FDX is trading at a discount to the group.
We can also see that FDX currently has a PEG ratio of 0.76. 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. The Transportation - Air Freight and Cargo industry currently had an average PEG ratio of 1.14 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 172, putting it in the bottom 33% 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.
To follow FDX in the coming trading sessions, be sure to utilize Zacks.com.