FedEx (FDX) closed at $312.42 in the latest trading session, marking a +2.61% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.41%. On the other hand, the Dow registered a loss of 0.83%, and the technology-centric Nasdaq increased by 0.91%.
The package delivery company's shares have seen an increase of 3.95% over the last month, surpassing the Transportation sector's gain of 0.99% and the S&P 500's gain of 0.38%.
The investment community will be paying close attention to the earnings performance of FedEx in its upcoming release. On that day, FedEx is projected to report earnings of $4.06 per share, which would represent a year-over-year decline of 9.98%. Meanwhile, our latest consensus estimate is calling for revenue of $23.46 billion, up 5.89% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $18.38 per share and a revenue of $92.6 billion, representing changes of +1.04% and +5.32%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for FedEx. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.69% downward. As of now, FedEx holds a Zacks Rank of #3 (Hold).
Investors should also note FedEx's current valuation metrics, including its Forward P/E ratio of 16.56. For comparison, its industry has an average Forward P/E of 16.56, which means FedEx is trading at no noticeable deviation to the group.
We can also see that FDX currently has a PEG ratio of 1.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.87 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 99, positioning it in the top 41% 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.
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FedEx Corporation (FDX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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