FedEx (FDX) closed the most recent trading day at $362.54, moving +2.58% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.51%. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq lost 1.51%.
Heading into today, shares of the package delivery company had gained 14.78% over the past month, outpacing the Transportation sector's gain of 8.11% and the S&P 500's gain of 0.93%.
The upcoming earnings release of FedEx will be of great interest to investors. In that report, analysts expect FedEx to post earnings of $4.06 per share. This would mark a year-over-year decline of 9.98%. In the meantime, our current consensus estimate forecasts the revenue to be $23.46 billion, indicating a 5.89% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $18.38 per share and revenue of $92.6 billion. These totals would mark changes of +1.04% and +5.32%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for FedEx. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.69% decrease. FedEx is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, FedEx is at present trading with a Forward P/E ratio of 19.23. This represents a premium compared to its industry average Forward P/E of 18.5.
Investors should also note that FDX has a PEG ratio of 1.77 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. The Transportation - Air Freight and Cargo industry currently had an average PEG ratio of 1.77 as of yesterday's close.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 96, this industry ranks in the top 40% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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FedEx Corporation (FDX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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