Back to top

Image: Bigstock

FedEx (FDX) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, FedEx (FDX - Free Report) closed at $116.74, marking a +1.41% move from the previous day. This move outpaced the S&P 500's daily gain of 1.15%. Elsewhere, the Dow gained 0.89%, while the tech-heavy Nasdaq added 1.42%.

FDX will be looking to display strength as it nears its next earnings release. On that day, FDX is projected to report earnings of $2.47 per share, which would represent a year-over-year decline of 50.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.12 billion, down 3.88% from the year-ago period.

FDX's full-year Zacks Consensus Estimates are calling for earnings of $9.25 per share and revenue of $69.02 billion. These results would represent year-over-year changes of -40.4% and -0.97%, respectively.

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. 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. The Zacks Consensus EPS estimate has moved 1.3% lower within the past month. FDX currently has a Zacks Rank of #3 (Hold).

Investors should also note FDX's current valuation metrics, including its Forward P/E ratio of 12.44. Its industry sports an average Forward P/E of 14.09, so we one might conclude that FDX is trading at a discount comparatively.

Investors should also note that FDX has a PEG ratio of 1.04 right now. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.65 based on yesterday's closing prices.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% 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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


FedEx Corporation (FDX) - free report >>

Published in