In the latest trading session, FedEx (FDX) closed at $233.00, marking a -1.6% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.43%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 0.22%.
Prior to today's trading, shares of the package delivery company had lost 2.63% lagged the Transportation sector's gain of 1.06% and the S&P 500's gain of 2.65%.
Analysts and investors alike will be keeping a close eye on the performance of FedEx in its upcoming earnings disclosure. The company's earnings report is set to go public on September 18, 2025. The company is predicted to post an EPS of $3.71, indicating a 3.06% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $21.76 billion, up 0.82% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $18.49 per share and a revenue of $89.39 billion, signifying shifts of +1.65% and +1.67%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for FedEx. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FedEx is currently sporting a Zacks Rank of #4 (Sell).
From a valuation perspective, FedEx is currently exchanging hands at a Forward P/E ratio of 12.81. For comparison, its industry has an average Forward P/E of 13.61, which means FedEx is trading at a discount to the group.
It is also worth noting that FDX currently has a PEG ratio of 1.23. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.63 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 196, finds itself in the bottom 21% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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FedEx Corporation (FDX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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