FedEx (FDX - Free Report) closed at $159.54 in the latest trading session, marking a +1.91% move from the prior day. This change outpaced the S&P 500's 0.75% gain on the day. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.32%.
Coming into today, shares of the package delivery company had gained 1.62% in the past month. In that same time, the Transportation sector gained 2.03%, while the S&P 500 gained 3.42%.
Wall Street will be looking for positivity from FDX as it approaches its next earnings report date. This is expected to be December 17, 2019. The company is expected to report EPS of $2.86, down 29.03% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $17.58 billion, down 1.38% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.11 per share and revenue of $69.72 billion. These totals would mark changes of -21.97% and +0.04%, respectively, from last year.
Any recent changes to analyst estimates for FDX should also be noted by investors. Recent revisions tend to reflect the latest 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. 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, 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 remained stagnant. 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 12.56. Its industry sports an average Forward P/E of 11.15, so we one might conclude that FDX is trading at a premium comparatively.
We can also see that FDX currently has a PEG ratio of 1.05. 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 1.44 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.